• A trade carried out by the seller delivering securities and the buyer delivering funds in proper form. A trade that does not clear is said to fail.
• A trade is carried out by the seller delivering securities and the buyer delivering funds in proper form. A trade that does not clear is said to fail.
| ||Embedded terms in definition|
| ||Referenced Terms|
| ||Clearing float: The delay between deposit of a payment and when spendable funds become available to the firm. This refers to the time it takes for a cheque to Clear.|
| ||Clearing house interbank payment system: The most important wire transfer service; operated by international banking consortia.Banks and other financial intermediaries send most of their wholesale payments electronically either through Fedwire or Clearing House InterBank Payment System (CHIPS). All claims sent on CHIPS clear at the end of the day.Abbreviated CHIPS. An international wire transfer system for high-value payments operated by a group of major banks.|
| ||Joint clearing members: Firms that Clear on more than one exchange.|
| ||Netting out: To get or bring in as a net; to Clear as profit.|
| ||Options clearing corporation: Is the entity through which various securities exchanges Clear options transactions. This clearing activity consists of serving as the buyer to all sellers and the seller to all buyers in terms of guaranteeing contractual performance.|
| ||Related Terms|
| ||Clear a position|