Definitions for clearing house
clear·ing house

Princeton's WordNetRate this definition:0.0 / 0 votes

1. clearing housenoun

   a central collection place where banks exchange checks or drafts; participants maintain an account against which credits or debits are posted

WiktionaryRate this definition:0.0 / 0 votes

1. clearing housenoun

   A central point where clearing banks exchange checks etc and settle accounts

2. clearing housenoun

   A hub of goods traffic

3. clearing housenoun

   A repository structure, physical or virtual, that collects, stores, and disseminates information, metadata, and data

ChatGPTRate this definition:0.0 / 0 votes

1. clearing house

   A clearing house is a financial institution that acts as an intermediary between buyers and sellers in various financial transactions. Its key functions include ensuring the smooth completion of transactions, clearing and settlement of trading contracts, managing post-trade risks, collection and maintaining of margin money, and reporting trading data. The use of a clearing house reduces the risk of one party defaulting on their obligations in a transaction. The concept is especially important in complex financial markets such as futures, options, and other derivative markets.

WikidataRate this definition:0.0 / 0 votes

1. Clearing house

   A clearing house is a financial institution that provides clearing and settlement services for financial and commodities derivatives and securities transactions. These transactions may be executed on a futures exchange or securities exchange, as well as off-exchange in the over-the-counter market. A clearing house stands between two clearing firms and its purpose is to reduce the risk of one clearing firm failing to honor its trade settlement obligations. A clearing house reduces the settlement risks by netting offsetting transactions between multiple counterparties, by requiring collateral deposits, by providing independent valuation of trades and collateral, by monitoring the credit worthiness of the clearing firms, and in many cases, by providing a guarantee fund that can be used to cover losses that exceed a defaulting clearing firm's collateral on deposit. Once a trade has been executed by two counterparties either on an exchange, or in the OTC markets, the trade can be handed over to a clearing house which then steps between the two original traders' clearing firms and assumes the legal counterparty risk for the trade. This process of transferring the trade title to the clearing house is called novation. It can take fractions of seconds in highly liquid futures markets; or days, or even weeks in some OTC markets.

Matched Categories

1. • Financial Institution

How to pronounce clearing house?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say clearing house in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of clearing house in Chaldean Numerology is: 4

2. Pythagorean Numerology

   The numerical value of clearing house in Pythagorean Numerology is: 2

Examples of clearing house in a Sentence

1. Timothy Massad:

   The risk to the clearing house is primarily whether the customer account is adequately margined.

2. Jo Rae Perkins:

   I can read all these articles. It's kind of like a clearing house. And that's what I really like about Q. That's one thing that I like, the other thing is that there are questions in the Socratic method... Go do your own research, figure it out for yourself.

3. Jo Rae Perkins:

   Q is a resource for information, i can read all these articles. It's kind of like a clearing house. And that's what I really like about Q. That's one thing that I like, the other thing is that there are questions in the Socratic method... Go do your own research, figure it out for yourself.

4. Patrick Pearson:

   We don't follow the suggestion that we should simply accept higher client numbers (margins) in America and lower client numbers in Europe, if we don't solve this margin question, one clearing house in Europe is already saying I have to relocate to the United States.

References

1. ^ Princeton's WordNet
   http://wordnetweb.princeton.edu/perl/webwn?s=clearing house
2. ^ Wiktionary
   https://en.wiktionary.org/wiki/Clearing_House
3. ^ ChatGPT
   https://chat.openai.com
4. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=clearing house