Clearing

This Issue in United States

Concept of Clearing in Futures Trading

In this context of financial law, the following is a definition of Clearing: The procedure through which the clearing organization becomes the buyer to each seller of a futures contract or other derivative, and the seller to each buyer for clearing members.

Depository Trust and Clearing Corporation (dtcc)

Concept of Depository Trust and Clearing Corporation (dtcc) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A holding company that, through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. DTCC provides OTC (over the counter) derivatives post-trade processing services, including electronic matching, clearing, credit event processing and settlement, through its wholly-owned Deriv/SERV LLC subsidiary.

Resources

See Also

• Derivatives Contract

Independent Clearing Organisation

Concept of Independent Clearing Organisation in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An independent clearing organisation which is capitalised without recourse to the members of the exchange. The organisation will guarantee to each member the performance of the contracts by the contract registered in the organisation’s name, thus removing counterparty risk against the other clearing members.

Resources

See Also

• Derivatives Contract