The collection of funds which a check is drawn on, and the payment of those funds to the bearer. Also, the verification of information between the two brokers in a securities transaction and the subsequent settlement ( delivery of certificates in exchange for payment). see also National Securities Clearing Corporation, Options Clearing Corporation, Stock Clearing Corporation.
The procedure through which trades are checked for accuracy. Once the trades are validated, the clearinghouse or association becomes the buyer to each seller and the seller to each buyer.
The process of setting a number of items against one another and making fund transfers on the net balance only as part of the settlement process.
Execution of a trade by physically delivering the traded securities against the payment of the agreed price. Most frequently, trades are cleared 3 bank business days after the trade has been concluded.
Offsetting and settlement of obligations and liabilities from futures trades. It comprises in particular the daily balancing of profits and losses, the calculation of securities as well as the final settlement on the last day of trading.
Settlement. The physical resp. financial fulfilment of trade contracts.
Mutual clearance and evaluation on both the security and money side of securities transactions effected on the stock exchange. Collateral is simultaneously demanded by a central counterparty. As a result, only the balance(s) of each trading partner need(s) to be credited or debited respectively. This procedure not only facilitates the technical settlement of securities trades, but also reduces the number of bookings to a minimum.
The process of settling a Forex market trading.
The process of reconciling details of a securities trade that are provided by various parties to the transaction, prior to settlement. Clearing can be a highly lucrative business for securities firms, partly because the function is often linked to margin-lending activities.
He process of settling a trade.
The process of settling all the differences between Ring members at the end of the day's trading. It is implemented through the clearing house (qv).
Is the process of financial guarantee between clearing members. This activity intends to eliminate the risk of contractual or transactional default. For example, two clients execute a trade through two different clearing member firms. The clients are solvent but at the end of the day one of the clearing members is not. This transaction through a clearinghouse would preserve the integrity of the trade.
The procedure through which trades are checked for accuracy after which the clearinghouse or association becomes the buyer to each seller of a futures contract, and the seller to each buyer.
Clearing is the process by which a Clearing House assumes responsibility for guaranteeing futures transactions at its exchange by taking both the buyer's and the seller's side of a transaction. The Clearing House oversees margin administration and the orderly flow of exchange trading execution. A Clearing Member clears all trades of a non Clearing member.
The matching of trade instructions from the buyer of a security with those of the seller of a security to facilitate payment for and receipt of the security.
The process of matching, guaranteeing and registering transactions.
Compilation of each participant's purchases and sales of securities, resulting in the net position of each participant. See also settlement and VP.
The process of transmitting, reconciling and, in some cases, confirming payment orders or security transfer instructions prior to settlement, possibly including the netting of instructions and the establishment of final positions for settlement. Sometimes the term is used to include settlement.
The process of settling an unclosed position, by asking a bid position or bidding an ask position.
The process of transmitting, reconciling and in some cases confirming payment instructions prior to settlement; it may include netting of instructions and the calculation of final positions for settlement.
The process of settling a trade.
Process by which a payment order moves from the initiator of the order to the final recipient.
Clearing refers to the process by which the mutual indebtedness between buyers and sellers is settled.
Clearing refers to the process by which all transactions between members is settled through multilateral netting.
The process by which a clearinghouse maintains records of all trades and settles margin flow on a daily mark-to-market basis for its clearing member. A trade can either be a bilateral trade between a buyer and a seller. Or it might involve a third party “clearing” the trade. In the first instance the parties to the trade will have to assess and mange the Credit Risk (the risk that the other party will default on its obligations of the trade). Using a Clearing House – the clearing house is the counterpart of the trade – both for the buyer and the seller. The advantages are twofold: a) Most often the Clearing House is more financially sound b) The Clearing House has a more advanced system for monitoring risk exposure for each clearing house member. c) The buyer and seller saves the resources needed to maintain a separate credit department.
Administrative settlement of securities, futures and options transactions through a clearing organisation and the financial institutions associated with it (clearing members).
The process of registration, settlement, margin and the provision of a guarantee.
The procedure through which the clearinghouse becomes the buyer to each seller of a futures contract and the seller to each buyer and assumes responsibility for the financial integrity of each open contract.
The process of transmitting, reconciling and, in some cases, confirming financial transactions between financial institutions prior to settlement, possibly including netting of instructions and the establishment of final positions of settlement. Sometimes the term is used (imprecisely) to include settlement.
Confirmation of trade details with the counterparty or the exchange.
The process of reconciling information about transactions between broker-dealer counterparties in preparation for settlement of the trades.
The procedure through which the clearing house or association becomes the buyer to each seller of a futures contract, and the seller to each buyer, and assumes responsibility for protecting buyers and sellers from financial loss by assuring performance on each contract.
The procedure through which the clearing organization becomes the buyer to each seller of a futures contract or other derivative, and the seller to each buyer for clearing members.
Refers to the settlements/confirmations of trades.
The process of matching, registering and guaranteeing transactions.
The process of exchanging financial transaction details between an acquirer and an issuer to facilitate posting of a cardholder's account and reconciliation of a customer's settlement position.
In banking and finance, clearing denotes all activities from the time a commitment is made for a transaction until it is settled (see settlement). Clearing is necessary because the speed of trades is much faster than the cycle time for completing the underlying transaction.