clearing corporation: translation
An independent corporation that settles all trades made at the Chicago Board of Trade acting as a guarantor for all trades cleared by it, reconciles all clearing member firm accounts each day to ensure that all gains have been credited and all losses have been collected, and sets and adjusts clearing member firm margins for changing market conditions. Chicago Board of Trade glossary
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An agency connected with a financial exchange through which brokers and other parties to a securities trade settle trades conveniently, with minimum paperwork. Financial settlements are simplified by combining and netting transactions.
Sometimes called a clearinghouse. American Banker Glossary