what is the difference between a broker and a clearinghouse 
a broker is a person or entity through with customers can access the financial markets and place trades the clearinghouse handles the back office operations after the trade is placed ensuring the trade is cleared can a clearinghouse fail while it is technically possible for a clearinghouse to fail under the dodd frank act regulators are authorized to designate clearinghouses as systemically important to the smooth functioning of financial markets and to step in to provide emergency funding is so required the bottom lineclearinghouses are essential to the smooth functioning of the financial markets they act as intermediaries between the buyer and seller ensuring the smooth functioning of the markets 