clearing house

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Clearing Corporation

An agency or corporation on an exchange that settles transactions for a fee. Most exchanges have one or more clearing corporations that are charged with matching orders together, ensuring that delivery is made to the correct party, and collecting margin money. Because so many trades take place on an exchange in a given day, clearing corporations exist to process what each party owes or is owed in a central location so that the fewest securities and the least amount of money actually change hands. For example, suppose that a broker-dealer buys 1,000 shares of a security and then, in a completely separate transaction, sells 700 of the same shares. At the end of the trading day, the clearing house would determine that the broker-dealer must only buy 300 shares as the other 700 belong to another party. Clearing corporations receive a clearing fee in exchange for these services.

clearing house

A corporation established by an exchange in order to facilitate the execution of trades by transferring funds, assigning deliveries, and guaranteeing the performance of all obligations. See also clearing-house statement.
References in periodicals archive ?
CheckClear LLC, the owner and operator of the Endpoint Exchange Network announced today that Jack Henry & Associates will offer its financial institution clients an image based check clearing and settlement solution through the National Clearing House Association (NCHA) and CheckClear's Endpoint Exchange Network, the country's largest and most advanced image exchange network.
The objective of this initiative is to develop standards and build and operate a scaleable clearing house infrastructure that will make electronic distribution of software secure, accountable, quick, and inexpensive.
Holland Clearing House (HCH) is a continental European derivatives clearing house based in Amsterdam and is the primary clearing house for the TOM multi-lateral trading facility.
To counter the stringency arising from reserve money being "hoarded," Cannon explained, clearing houses began the practice of issuing CHLCs, which were based on short-term paper deposited by the borrowing banks as collateral.
12 /PRNewswire/ -- The Clearing House (formerly the New York Clearing House) and the Chicago Clearing House Association announced today that their respective organizations have merged into "The Clearing House.
NEW YORK and CHICAGO -- NEW YORK and CHICAGO, April 30 /PRNewswire/ -- The Clearing House and The Chicago Clearing House announced today that they have signed a letter of intent to pursue a merger of the two organizations.
The Endpoint Exchange Network and the National Clearing House (NCHA) will make it possible for financial institutions across the country to trade check images with other institutions, nationwide.
Standard & Poor's rating criteria for exchanges and clearing houses will be published in the upcoming Counterparty Rating Guide and may be obtained through the Communications Department.
NeTrue's core technical competencies include QoS management, network management, clearing house technology in IP Telephony networks.
COCC's agreements with CheckClear and The National Clearing House are strategic components that will usher in the era of check truncation and image exchange for our client institutions," said COCC's President and CEO, Richard A.
The Oklahoma City-based Endpoint Exchange Network and The National Clearing House (NCHA) now make it possible for every financial institution across the country to trade check images with every other institution, regardless of their check imaging platform or check image exchange record format.

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