Clearing Corporation
1830·updated Aug 30, 2026Also known as a clearing house or clearing house association. A central processing mechanism whereby members agree to net, clear, and settle transactions involving financial instruments. Clearing corporations fulfill one or all of the following functions: Net many trades so that the number and the amount of payments that have to be made are minimized, determine money obligations among traders, and guarantee that trades will go through by legally assuming the risk of payments not made or securities not delivered. The latter function is implied when it is stated that the clearing corporation becomes the "counterpart" to all trades entered into its system.
Attested in
No recorded attestations. They are written when an MWE tagging stage is completed, stamped with the pack version and the document’s digest.
Classifications
Entity Type
Sensitivity
Information Class
Variants
- plural
- Clearing Corporations
- possessive
- Clearing Corporation's
- pluralpossessive
- Clearing Corporations'
Framework definitions
- §1
- Also known as a clearing house or clearing house association. A central processing mechanism whereby members agree to net, clear, and settle transactions involving financial instruments. Clearing corporations fulfill one or all of the following functions: Net many trades so that the number and the amount of payments that have to be made are minimized, determine money obligations among traders, and guarantee that trades will go through by legally assuming the risk of payments not made or securities not delivered. The latter function is implied when it is stated that the clearing corporation becomes the "counterpart" to all trades entered into its system.
- §1 · legacy_primary
- Also known as a clearing house or clearing house association. A central processing mechanism whereby members agree to net, clear, and settle transactions involving financial instruments. Clearing corporations fulfill one or all of the following functions: Net many trades so that the number and the amount of payments that have to be made are minimized, determine money obligations among traders, and guarantee that trades will go through by legally assuming the risk of payments not made or securities not delivered. The latter function is implied when it is stated that the clearing corporation becomes the "counterpart" to all trades entered into its system.DR-088 backfill from the noun definition column