- The definition of a clearinghouse is a central office, either a physical office or an electronic office.
- 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.
clearinghouse definition by Webster's New World
- an office maintained by a group of banks as a center for exchanging checks drawn against one another, balancing accounts, etc.
- a central office, as for the collection and dissemination of information
clearinghouse - Business Definition
- A corporation established by an exchange in order to facilitate the execution of trades by transferring funds, assigning deliveries, and guaranteeing the performance of all obligations.
- In banking, a cooperative funds transfer system for interbank clearing of checks and electronic entries.
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.Webster's New World Finance and Investment Dictionary Copyright © 2010 by Wiley Publishing, Inc., Indianapolis, Indiana. Used by arrangement with John Wiley & Sons, Inc.
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.