An organization which works with the exchanges to handle confirmation, delivery...
registered clearing agency that provides specialized comparison, clearance and settlement services for its members. A clearing corporation typically offersservices such as automated comparison systems and transaction netting systems. Compare: DEPOSITORY. See: NATIONAL SECURITIES CLEARING CORPORATION; REGISTERED CLEARING AGENCY.
A central processing mechanism through which financial institutions agree to exchange payment instructions or other financial obligations (e.g. securities). The institutions settle for items exchanged at a designated time based on the rules and procedures of the clearing corporation. In some cases, the clearing corporation may assume significant counterparty, financial, or risk management responsibilities for the clearing system.
An organization which matches and guarantees option trades on exchange.
See Board of Trade Clearing Corporation.
An independent corporation that settles all trades made at an exchange, acting as a guarantor for all trades cleared by it, reconciles all clearing member firm accounts each day to ensure that all gains have been credited and all losses have been collected, and sets and adjusts clearing member firm margins for changing market conditions.
The entity whose function it is to clear (match) all purchases and sales and to assure the financial integrity of all open futures and options transactions on a futures (derivatives) exchange.
An organization affiliated with a securities exchange that expedites the clearance and settlement of securities purchased or sold by members of that exchange.