Clearing Corporation

(redirected from Clearing Firms)

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.
References in periodicals archive ?
As the retirement plan market has expanded, custodians and clearing firms have been working on developing and rolling out new resources and services specifically geared to the retirement plan registered investment adviser (RIA).
For example, at the end of March, margin debt at New York Stock Exchange clearing firms alone jumped to $278.
The majority of derivatives clearing gateways require clearing firms to spend resources on maintaining multiple systems due to the proprietary technologies and data formats used by clearing houses.
AS SQUEEZED PROFIT margins continue to bedevil independent broker/dealers in the wake of the financial crisis, those B/Ds' clearing firms have become more important than ever to their correspondent broker/dealers and to representatives alike.
OTCBB: GWSI) announced today that it has filed a complaint with The Financial Industry Regulatory Authority (FINRA) against two clearing firms which the company believes aided and abetted stock manipulation yesterday, resulting in a significant decline in the company's stock price.
A real-time, order-to-settlement system for processing securities transactions, Phase3 supports retail and institutional broker-dealers, ECNs, and correspondent clearing firms.
BRASS facilitates trade execution through connectivity with the buy-side community via the SunGard Transaction Network, through links with major back-office clearing firms, and through direct access to all major domestic exchanges and trading destinations.
In fifteen-plus years we have now come full circle, believing that clearing firms have become highly efficient in driving down the cost of transactions and can clear and settle multiple products and markets better than we can internally.
The company has developed the capability to consolidate accounts from multiple back office systems, custodians or clearing firms for reporting and online access.
There are numerous discrepancies of varying magnitudes that have come to light with the submission of these lists, and the management at Pegasus is obliged to notify the shareholders as well as the Broker/Dealers and clearing firms as to its policy regarding this matter.
Using patent-pending technology, Albridge Solutions collects, cleanses and normalizes the transaction and position-level securities data it receives from settlement and clearing firms, data custodians, product companies and internal proprietary systems.
Bobinski was chief financial officer at Refco, LLC, one of the world's largest futures trading and clearing firms, with over 200,000 customers and $4 billion in customer assets.

Full browser ?