Clearing house (finance)
Financial institution that provides clearing and settlement services / From Wikipedia, the free encyclopedia
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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.[1] A clearing house provides emergency lending and assists banks when they need help.[2]