<P> 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 . </P>
<P> 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 . </P>
what is the purpose of a clearing house
what is the purpose of a clearing house
to facilitate the exchange ( i.e. , clearance ) of payments , securities , or derivatives transactions
to facilitate the exchange ( i.e. , clearance ) of payments , securities , or derivatives transactions