Clearing corporations

Clearing corporations

Organizations that are affiliated with exchanges and are used to complete securities transactions by taking care of validation, delivery, and settlement.

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 ?
Since 1999, Don has played a major leadership role in helping us seamlessly integrate and streamline the various clearing corporations and depository functions under the DTCC organizational umbrella, without any disruption in service to our customers," said Considine.
NEW YORK -- The Depository Trust & Clearing Corporation (DTCC) announced today that Donald F.
Lastly, DTCC completed multi-year initiatives in 2005 that previously required significant investment, including expenses for business continuity purposes such as the establishment of the Southern Business Center in Tampa and the insourcing of certain data processing functions for the clearing corporations," said Considine.
NEW YORK -- The Depository Trust & Clearing Corporation (DTCC) today announced record discounts and year-end rebates for its customers totaling nearly $528 million, more than double what was returned to customers in 2004.
SIAC operates clearance and settlement systems on behalf of the clearing corporations.
and overseas, is a holding company for four subsidiary businesses -- a depository and three clearing corporations -- as well as the co-owner with Thomson Financial of a global joint venture called Omgeo.
DTCC is the holding company for six subsidiary businesses - a depository and five clearing corporations.
DTCC is the holding company for six subsidiary businesses - a depository and five clearing corporations - as well as a global joint venture with Thomson Financial (called Omgeo).
Access to the Apogean ATS is restricted to those institutions that are members of the Emerging Markets Clearing Corporations (EMCC), and trading is available only on EMCC-eligible securities.
The Depository Trust & Clearing Corporation (DTCC) today announced the availability of a new DTCC operations certification program for its customers that meets industry needs for standardization of credentials among operations professionals.
Percussion(R) Software, the only content management vendor committed to providing the lowest total cost of ownership for Web content management, announced today that The Depository Trust & Clearing Corporation (DTCC)--the world's largest financial services post-trade organization, which processed more than $105 trillion in equity and bond transactions in 2000--has selected Rhythmyx(TM) Content Manager V4.
Access to the Apogean ATS is restricted to those institutions that are members of the Emerging Markets Clearing Corporation (EMCC), and trading is available only on EMCC-eligible securities.

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