Clearing Corporation

nounid 1830·updated May 12, 2026

candidate

GlossaryL1 — what DictionaryL2 — how used ThesaurusL3 — relations Universaleverything

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.

MWE

Classifications

per-axis with provenance

Entity Type

Organization0%rule-basedmulti_axis_classifier_low_confidence.v1

Sensitivity

Regulated90%llm-generatedllm:claude-haiku-4-5

Information Class

—60%llm-generatedllm:claude-haiku-4-5

Variants

3 surface forms

plural: Clearing Corporations
possessive: Clearing Corporation's
pluralpossessive: Clearing Corporations'

Framework definitions

1 sense across 1 framework

Federal Financial Institutions Examination Council (FFIEC) IT Examination Handbook Infobase, Glossary1 senseview framework →

§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.

Outgoing relationships

term as subject — 0 triples

No outgoing triples

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Incoming relationships

term as object — 0 triples

No incoming triples

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