Clearing house (finance)
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A clearing house (or clearinghouse) is a financial services company that provides clearing and settlement services for financial transactions, usually on a futures exchange, and often acts as central counterparty. A clearing house may also offer novation, the substitution of a new contract or debt for an old, or other credit enhancement services to its members.
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[edit] Clearing on Options Exchanges
The Options Clearing Corporation is an example of a clearing house that functions for the purpose of clearing equity options, in order to ensure the proper implementation of these instruments.
Another kind of clearinghouse is "Geospatial Data Clearinghouse" which is a site that you can find your favorite spatial data in it.
[edit] Clearing on Futures Exchanges
The London Clearing House, for example, provides clearing and settlement services for the International Petroleum Exchange, London, which is affiliated with the Intercontinental Exchange, Atlanta, Georgia. The London Clearing House also acts as the clearing house for Euronext.liffe and the London Metals Exchange.
In 2001, the Commodity Futures Trading Commission registered the London Clearing House as a Derivatives Clearing Organization (DCO) in the United States, making it the first offshore DCO to be recognized under the statutory mandate of the Commodity Futures Modernization Act of 2000.
[edit] Clearing of payments
In the United States, the National Automated Clearing House Association (NACHA) organizes the mechanism for the financial service institutions that participate in the Automated Clearing House (ACH) network. These organizations use the ACH to transfer funds either as debits or credits between participating institutions. Most, but not all, US banks are members of the NACHA. Typical uses of ACH transactions are for automatic payroll programs, monthly mortgage or membership payments, or among non-profit organizations, as a monthly donor/contribution program.
[edit] Clearing of securities
In the United States, US securities clearing is done by DTC. International clearing is most commonly done by Euroclear and Clearstream.
[edit] See also
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