The Clearing Corporation

Definition

An organization that was established in 1925 as an independent clearing house for futures and derivatives markets, dedicated to ensuring financial integrity in clearing for financial marketplace. It continuously matches submitted trade, that is, the clearing participant buyer with the clearing participant seller. When the matched trade is accepted, the clearing corporation then takes a counterbalanced position (it becomes a buyer to the seller and a seller to the buyer) to ensure efficiency in the transaction.

Related Terms

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
THB position day