what is a clearing process 
clearing is the process of reconciling an options futures or securities transaction or the direct transfer of funds from one financial institution to another the process validates the availability of the appropriate funds records the transfer and in the case of securities ensures the delivery of the security or funds to the buyer the bottom linethe process of clearing ensures that the entities or parties engaged in a financial transaction are protected receive their due amount and the transaction goes smoothly the clearinghouse acts as a third party or mediator for the transaction while the clearing process records the details of the transaction and validates the availability of funds 