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Clearinghouse

• An adjunct to a futures exchange through which transactions executed its floor are settled by a process of matching purchases and sales. A clearing organization is also charged with the proper conduct of delivery procedures and the adequate financing of the entire operation.

 
 Embedded terms in definition
 Clearing
Delivery
Exchange
Floor
Futures
Its
Sales
 
 Referenced Terms
 Ach automated clearinghouse debits: Preauthorized electronic withdrawal from the payer's account and deposit into the payee's account via a settlement among banks by the automated Clearinghouse.

 Book entry securities: The Treasury and federal agencies are moving to a book-entry system in which securities are not represented by engraved pieces of paper but are maintained in computerized records at the Fed in the names of member banks, which, in turn, keep records of the securities they own as well as those they are holding for customers. In the case of other securities for which there is a book- entry system, engraved securities do exist somewhere in quite a few cases. These securities do not move from holder to holder but are usually kept in a central Clearinghouse or by another agent.The Treasury and federal agencies are moving to a book-entry system in which securities are not represented by engraved pieces of paper but are maintained in computerized records at the Fed in the names of member banks, which in turn keep records of the securities they own as well as those they are holding for customers. In the case of other securities where a book-entry has developed, engraved securities do exist somewhere in quite a few cases. These securities do not move from holder to holder but are usually kept in a central Clearinghouse or by another agent.

 Book entry securities: The Treasury and federal agencies are moving to a book-entry system in which securities are not represented by engraved pieces of paper but are maintained in computerized records at the Fed in the names of member banks, which, in turn, keep records of the securities they own as well as those they are holding for customers. In the case of other securities for which there is a book- entry system, engraved securities do exist somewhere in quite a few cases. These securities do not move from holder to holder but are usually kept in a central Clearinghouse or by another agent.The Treasury and federal agencies are moving to a book-entry system in which securities are not represented by engraved pieces of paper but are maintained in computerized records at the Fed in the names of member banks, which in turn keep records of the securities they own as well as those they are holding for customers. In the case of other securities where a book-entry has developed, engraved securities do exist somewhere in quite a few cases. These securities do not move from holder to holder but are usually kept in a central Clearinghouse or by another agent.

 Clearing: 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.

 Clearing house or clearinghouse: Is a facility which serves as a buyer to the seller and a seller to the buyer. It effectively guarantees the performance of transactions between its member participants. Trades processed by a Clearinghouse are generally assumed, though not guaranteed, to be free from financial failure.

 
 Related Terms
 Ach automated clearinghouse credits
Ach automated clearinghouse debits
Clearing house or clearinghouse

<< Clearing member Clientele effect >>

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