Clearing Corporation

An organization associated with an exchange to handle the confirmation, settlement and delivery of transactions, fulfilling the main obligation of ensuring transactions are made in a prompt and efficient manner.  They are also referred to as "clearing firms" or "clearing houses."


In order to make certain that transactions run smoothly, clearing corporations become the buyer to every seller and the seller to every buyer, or, in other words, take the off-setting position with a client in every transaction.




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Related Terms

Clearing House

Confirmation

Delivery

Delivery Date

Delivery Instrument

Settlement Date

Settlement Price

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