Clearing Corporation

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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.
References in periodicals archive ?
The government's indefinite suspension of a directive that had required all cargo to and from Mombasa Port to be ferried on the Standard Gauge Railway is a welcome relief for private truckers and clearing firms. It is a timely respite for those who risked losing their jobs.
- Bidirectional data synced between multiple clearing firms, fintech providers and Cambridge systems
This is an example of how clearing firms, market participants and CME Group can partner together to come up with productive, viable solutions."
??Discovery Data has announced it has acquired essentially all the business assets of Financial Media Group, the company said.??Discovery Data to provide its premium products and services to Financial Media Group clients resulting in 1,200 institutions and over 20,000 users of Discovery Data.??The acquisition expands Discovery Data's client coverage to 1,200 institutions and over 20,000 users across asset managers, wealth advisors, custodians, clearing firms, insurance companies and service providers.??Discovery Data is a provider of data on firms and professionals in the financial services and insurance industries, offers a consolidated view of the financial services industry, including all BD and RIA firms, over 700,000 reps, 2,200 trust companies and 1.8 million insurance agents.
By creating the new Clearing Firm Advisory Committee and Capital Acquisition and Placement Broker Committee, FINRA said it hopes to "gain important feedback from these member-firm segments, including with respect to issues facing small firms whose customer accounts are carried at clearing firms and small firms engaged in capital-raising activities."
Blythe Masters, CEO of Digital Asset, said, "These investments represent a tremendous endorsement of Digital Asset from banks, exchanges, settlement and clearing firms, central securities depositories, and market infrastructure and professional services providers.
Muscat, Jun 3 (ONA) The first application stage of the system of the computerization of customs procedures and operations and the one-stop e-station (Bayan) was launched this week and with the start of the registration process of trading partner in the system, including the system users, importers, exporters, clearing firms and shipping companies.
It may not be apparent how much the markups are, or how extensively the costs incorporate overall costs, but reps recognize that there is a spread between clearing firms' costs and what broker-dealers charge the representative.
Since its launch in Asia in May 2013, Orc Flow Control has been successfully deployed in production by large broker clearing firms across all major APAC equity and derivatives markets including HKEx, JPX, ASX, SGX and NSE and local access points for EMEA and American based exchanges.
Designed for multi-manager allocation platforms, separately managed accounts, clearing firms, prime brokers, family offices and proprietary trading shops, LiquidFIRM provides a macro look at total market exposure across all accounts in real-time, with the ability to drill into the results at the client, asset class, or issue level.
Seth Farbman, Chairman of Vstock Transfer commented, “We are delighted when we can help our clients navigate the complexities and requirements associated with DTC eligibility, DWAC/FAST eligibility and questions re clearing firms and the application process.”
Upon arrival to Tunisia to participate in the meetings of the AFE's Council and General Secretariat at its thirty-eighth session, which will be held for three days in the presence of the directors of the Arab stock exchanges and representatives of various clearing firms and financial services' companies, Al Mansoori stated that Qatar Exchange is keen to have effective participation in all AFE's activities in order to achieve fruitful cooperation between the member stock exchanges for the best interest of all of them.

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