An exchange member firm that is not able to clear transactions, and must pay another member firm to carry out its clearing operations.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
A member firm on an exchange that does not provide clearing services for other members and does not clear its own transactions. Nonclearing members must use a clearing house on the exchange to clear and settle trades. It pays a clearing fee for these services.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A member of a securities exchange that does not belong to the exchange's clearing facility. Rather, the nonclearing member pays another firm to provide the service.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.