A clearinghouse is a designated intermediary between a buyer and seller in a financial market. The clearinghouse validates and finalizes the transaction, ensuring that both the buyer and the seller honor their contractual obligations.
What innovation has done most to reduce risk in capital markets in the past decade? A leading contender is surely the wider use of “central clearing”, which entails a single institution acting as the buyer to every seller and the seller to every buyer of a particular kind of security.
Crypto Asset Trading Supervision Booklet by BAPPEBTI (CoFTRA)
A clearing fee is a charge assessed on securities transactions by a clearing house for completing transactions using its own facilities. It is most often associated with the trading of futures and includes all actions from the time a commitment is made to the time a transaction is settled.