All > Business > Finance > Personal Finance

• Clearing corporations, or clearinghouses, provide operational support for securities and commodities exchanges. They also help ensure the integrity of listed securities and derivatives transactions in the United States and other open markets.

  For example, when an order to buy or sell a futures or options contract is executed, the clearinghouse compares the details of the trade. Then it delivers the product to the buyer and ensures that payment is made to settle the transaction.

  Yahoo Finance - Cite This Source - This Definition
  ×

  Cite Definition for Clearinghouse

  American Psychological Association (APA)

  Clearinghouse. (n.d.). Yahoo Personal Finance Glossary. Retrieved March 28, 2023, from website: http://www.expertglossary.com/definition/clearinghouse.

  Chicago Manual of Style (CMS)

  Clearinghouse. finance.yahoo.com. Yahoo Personal Finance Glossary. Yahoo Finance. http://www.expertglossary.com/definition/clearinghouse (accessed: March 28, 2023).

  Modern Language Association (MLA)

  "Clearinghouse." Yahoo Personal Finance Glossary. Yahoo Finance. 28 March. 2023 http://www.expertglossary.com/definition/clearinghouse.

• Browse Related Terms: Cash settlement, Clearinghouse, Closing price, Commodity, Daily trading limit, derivative, Financial future, Fungible, Futures contract, Go long, Hedger, Open interest, Speculator, Trade date, Trading volume, Unit of trading, Weather derivative, Zero sum