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 ?
banking industry, a revolution in the payments market that brings a new level of service to businesses and consumers, said Tom Statnick, Chief Information Officer, The Clearing House.
Considering that the clearing house has recently acquired the status of a central counter party as per best international practice, various new requirements have been made applicable to the clearing house through the regulations to strengthen its new status and to meet its enhanced requirements.
Jonathan Browning, chairman of the Coventry and Warwickshire Local Enterprise Partnership, said: "is is a key role and we are delighted Craig will be leading the team of account managers and specialists at the Clearing House who are already assisting businesses across the area.
Bank panics prompted the clearing house managers to add a lending function to their clearing operations.
Lang is director of wholesale applications at the National Automated Clearing House Association in Herndon, Va.
Intercontinental Exchange, a leading operator of global exchanges and clearing houses and provider of data and listings services, today announced that the Bank of England has authorised ICE Clear Europe as a central counterparty (CCP) in accordance with the European Market Infrastructure Regulation (EMIR).
ISLAMABAD -- In line with its efforts to strengthen the capital market and as part of subsidiary legislation under the Securities Act, 2015, the Securities and Exchange Commission of Pakistan (SECP) has approved the Clearing Houses (Licensing and Operations) Regulations, 2016.
Holland Clearing House (HCH) is a continental European derivatives clearing house based in Amsterdam and is the primary clearing house for the TOM multi-lateral trading facility.
00 special dividend, which valued the clearing house at EUR813m.
Under the first proposal by the SEC, individual clearing house members will not be able to own more than 20% of any voting interest in a security-based swap clearing agency, rising to 40% if done in conjunction with any other clearing house members.

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