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The process of settling transactions. Most exchanges have one or more clearing houses, which are charged with matching orders together, ensuring that deliveries are made to the correct parties, and collecting margin money. Because so many trades take place on an exchange in a given day, clearing houses exist to process what each party owes or is owed in a central location so the fewest securities actually change hands. For example, suppose that a broker-dealer buys 1000 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 houses receive a clearing fee in exchange for clearance services.


Clearance is the first half of the process that completes your order to buy or sell a security. During clearance, the details on both sides of the transaction are compared electronically to ensure that the order to buy and the order to sell correspond.

For example, in a stock transaction, the Committee on Uniform Securities Identification Procedures (CUSIP) number, the number of shares, and the price per share must match.

Next, transactions within each broker-dealer are netted down, or offset, by matching its clients' buy orders against sell orders from others of its clients or among a group of affiliated firms. Their records are then updated to reflect the new ownership and account balances.

Any unmatched orders are forwarded to the National Securities Clearing Corporation (NSCC), which instructs selling broker-dealers to provide the relevant securities and the buying broker-dealer to send the cash.

References in periodicals archive ?
TM] to quickly and easily find candidates with specific, active security clearance requirements to fill open jobs in a range of disciplines.
Delay in security clearance was considered a major discouraging factor for foreign investment and also led to many complaints, said an SECP official, adding that the decision would not only increase foreign direct investment (FDI) in Pakistan but also increase trust level of foreigners in the country.
It is pertinent to mention here that foreign investors are required to obtain security clearance from the ministry before starting their businesses in Pakistan.
It can take up to two years for an individual to receive a security clearance.
In the aftermath of September 11, Director Mueller sought to have security clearances granted to many of the nation's state and local law enforcement leaders to assuage their fears of not getting necessary terrorist information because they lacked the proper clearance.
The Port Authority already requires that its employees pass a security clearance, "We need to look at it from a regional approach for everyone's benefit," said James Ellington, Port Authority general manager, security programs, operations and emergency management.
The "intent to revoke" letter sets forth two procedural paths for 1LT Blue: (1) forfeit his opportunity to contest the security clearance revocation; or (2) elect to submit a statement and materials for consideration in the final adjudication.
In a letter to Secretary O'Leary, DeWitt denounced suspension of his security clearance as "overzealousness and foolishness.
Over the years various a ave been published on what constitutes adverse information and what must be reported to the Defense Industrial Security Clearance Office (DISCO).
Dortch's audio courses, How to Find a Job in Washington DC, How to Obtain a Security Clearance from the U.
THE home ministry has been apparently jolted with attorney general ( AG) Mukul Rohatgi favouring security clearance to Sun TV that was rejected by it on grounds that it is a threat to economic security of the nation.
Lalit Bhasin as an Additional Director (category Non-Executive Independent) on the Board of Directors of the Company, pursuant to security clearance in respect of Mr.

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