- An example of a clearinghouse is a place where banks electronically exchange checks drawn against one another.
- An example of a clearinghouse is the central place where all key information is gathered, kept and distributed for a company.
- an office maintained by a group of banks as a center for exchanging checks drawn against one another, for balancing accounts, etc.
- a central office, as for the collection and dissemination of information
- Alternative spelling of clearing house.
clearinghouse - Investment & Finance Definition
A business where mutual claims are settled between the accounts of member depository institutions. Banking clearinghouses manage check-clearing activities along with electronic fund transfers. A clearinghouse in the futures industry assists the transfer of funds and contracts between members who execute trades. A clearinghouse is a central point for depositing and paying out funds that need to be credited or debited into the accounts of its member firms. A futures clearinghouse also guarantees the performance of the futures contract, despite what the individual member may do. If a member defaults, the collective resources of the members are used to satisfy the claim as necessary. Another role that a futures clearinghouse undertakes is assigning and overseeing the deliveries of future contracts at maturity. In order to be a member of a clearinghouse, a firm generally must be a member of the futures exchange.
clearinghouse - Legal Definition
- A place where banks daily exchange the checks, drafts, and other forms of indebtedness that are held by one bank and owed to another, and settle their balances all at one time.
- A place where brokers in stock or commodities exchanges daily settle their debits and credits with one another.
- A place for the exchange of information concerning a specific topic.