what is clearing 
clearing is the procedure by which financial trades settle that is the correct and timely transfer of funds to the seller and securities to the buyer often with clearing a specialized organization acts as the intermediary and assumes the role of tacit buyer and seller to reconcile orders between transacting parties clearing is necessary for the matching of all buy and sell orders in the market it provides smoother and more efficient markets as parties can make transfers to the clearing corporation rather than to each individual party with whom they transact 