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Clearing house
01
a financial institution that oversees exchanging cheques and other financial transactions
Example
The clearing house acts as an intermediary between buyers and sellers in financial markets, facilitating the settlement of transactions.
In the derivatives market, the clearing house plays a crucial role in mitigating counterparty risk by guaranteeing the performance of trades.
The clearing house conducts daily settlements to ensure that trades are settled promptly and accurately, reducing systemic risk in the financial system.
After trading stocks, brokers submit their orders to the clearing house for reconciliation and settlement.
The international clearing house handles transactions between banks from different countries, ensuring smooth and efficient cross-border payments.
