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 ?
If a clearing house mechanism were created, it should share information related to conservation and management, environmental impact assessments, and on the demand side, capacity-building and technology transfer.
The order clearing house desk is tasked to regularly monitor all alert orders and ensure that its implementation is in accordance with existing policies and conditions to warrant its issuance.
McKernan Packaging Clearing House helps small businesses, start-ups and larger corporations find quality packaging components at a fraction of the cost.
The clearing house was formed on Oct 2, 2012, through alleged lobbying of long distance and international operators.
Espenilla Jr., the country's central monetary authority launched InstaPay, the second automated clearing house under the BSP's initiative to boost electronic payments in the country.
The clearing house has said that it has chosen SecurDPS to bolster its data protection routines.
Emirates Data Clearing House (EDCH) recently held its 15th Annual User Group meeting gathering 82 operators from Europe, Africa, Asia and the MENA region.
Emirates Data Clearing House (EDCH), the only data-clearing house based in the Middle East and Africa providing roaming solutions to mobile operators organised its 15th Annual User Group meeting gathering 82 operators from Europe, Africa, Asia and the MENA region.
Bank-owned financial messaging provider SWIFT will provide US institutions with a gateway to The Clearing House's real-time payments (RTP) platform.
The Dubai Gold and Commodities Exchange (DGCX) and its CCP subsidiary, Dubai Commodities Clearing Corporation (DCCC) have been recognised as a remote exchange and clearing house by the Financial Services Regulatory Authority (FSRA), the regulatory authority for the Abu Dhabi Global Market (ADGM), enabling ADGM companies to access its trading and clearing platforms.
The Dubai Gold and Commodities Exchange (DGCX) and its subsidiary, Dubai Commodities Clearing Corporation (DCCC) have been recognised as a remote exchange and clearing house by the Financial Services Regulatory Authority (FSRA), the regulatory authority for the Abu Dhabi Global Market (ADGM).
That segment of the reforms could affect operations like the London Stock Exchange's London Clearing House (LCH).

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