Clearing Corporation

Business, Legal & Accounting Glossary

Definition: Clearing Corporation


Clearing Corporation

Quick Summary of Clearing Corporation


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.




Full Definition of Clearing Corporation


An organization which works with the exchanges to handle confirmation, delivery and settlement of transactions. Such corporations play a key role in ensuring that executed trades are settled within a specified period of time and in an efficient manner. also called clearing firm or clearing house.


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December 06, 2021 https://payrollheaven.com/define/clearing-corporation/.
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Clearing Corporation. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/clearing-corporation/ (accessed: December 06, 2021).
American Psychological Association (APA):
Clearing Corporation. PayrollHeaven.com. Retrieved December 06, 2021
, from PayrollHeaven.com website: https://payrollheaven.com/define/clearing-corporation/

Definition Sources


Definitions for Clearing Corporation are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 21st November, 2021 | 0 Views.