A firm that undertakes guaranteeing the performance and contractual fulfillment of the parties to the transactions of exchange-traded derivatives (ET derivatives). By so doing, the clearinghouse facilitates the validation, delivery and settlement of securities transactions (which all constitute the so-called clearing process). In clearing, the clearinghouse becomes the buyer to each seller of a futures contract (or derivative) and the seller to each buyer of its clearing members.
The clearinghouse (British English) is also referred to as a clearing corporation (American English).
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