clearing house
1
4.9
- noun
- /ˈklɪrɪŋ haʊs/
- Specialized
:
cámara de compensación
- At the end of each day, the clearing house reconciles all checks deposited by its member banks.
Things like reducing settlement times to reduce clearing house risk, improved reporting of short sales, more transparency for off exchange trading.
- Things like reducing settlement times to reduce clearing house risk, improved reporting of short sales, more transparency for off exchange trading.
Examples
-
People are pushing to see them traded on exchange and to clear through clearing houses in order to improve the market for investors.
-
The Fed is just the clearing house; it doesn't loan money.
Blog text (19) -
The vault in question belongs to the Depository Trust & Clearing Corporation or DTCC, a clearing house for Wall Street firms, owned by Wall.
Blog text (5) -
All transactions in futures contracts are undertaken through brokers approved by the relevant futures exchange, and the actual settlement is effected through a clearing-house facility provided by the futures exchange responsible for trading in the contract.
Academic text (1992) -
The clearing house enables banks to efficiently settle their accounts after processing various transactions.
-
Investors can ensure their trades are settled properly through the services provided by a clearing house.
Synonyms
14
4.6
A place or organization that collects and sends information and payments between groups
A person or organization that settles payments between banks
How Large
Surface Forms
Morphology
The compound is partly compositional: 'house' as a firm and 'clearing' in the sense of removing or settling obligations gives a clue that it is an organization that settles transactions. However, the sense of 'clearing' here is a specialised/financial one (not the everyday 'removing particles from a liquid'), so a B1 learner who only knows the common meanings of the constituents would likely need prior exposure or domain knowledge to arrive at the full institutional meaning.
Etymology
Clearing house comes from when bank workers met in one room to clear checks and show who owed what. That physical 'house' made it easy to balance payments, so the phrase now means a central place where banks meet to 'settle accounts'.