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.

Cite Term

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Page URL
Modern Language Association (MLA):
Clearing Corporation. Payroll & Accounting Heaven Ltd.
December 06, 2021
Chicago Manual of Style (CMS):
Clearing Corporation. Payroll & Accounting Heaven Ltd. (accessed: December 06, 2021).
American Psychological Association (APA):
Clearing Corporation. Retrieved December 06, 2021
, from website:

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.