Clearing house (finance)
A clearing house is a financial institution formed to facilitate the exchange (i.e., clearance) of payments, securities, or derivatives transactions. The clearing house stands between two clearing firms (also known as member firms or participants). Its purpose is to reduce the risk of a member firm failing to honor its trade settlement obligations.
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| Financial markets |
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| Bond market |
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| Stock market |
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| Over-the-counter (off-exchange) |
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| Trading |
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