Clear
A trade is carried out by the seller delivering securities and the buyer delivering funds in proper form. A trade that does not clear is said to fail. |
Similar financial terms
Mortgage-Backed Securities Clearing CorporationA wholly owned subsidiary of the Midwest Stock Exchange that operates a clearing service for the comparison, netting, and margining of agency-guaranteed MBSs transacted for forward delivery.
Market clearing
Total demand for loans by borrowers equals total supply of loans from lenders. The market, any market, clears at the equilibrium rate of interest or price.
British clearers
The large clearing banks that dominate deposit taking and short-term lending in the domestic sterling market.
Clear a position
To eliminate a long or short position, leaving no ownership or obligation.
Clearing House Automated Payments System (CHAPS)
A computerized clearing system for sterling funds that began operations in 1984. It includes 14 member banks, nearly 450 participating banks, and is one of the clearing companies within the structure of the Association for Payment Clearing Services (APACS).
Clearing House Interbank Payments System (CHIPS)
An international wire transfer system for high-value payments operated by a group of major banks.
Clearing member
A member firm of a clearing house. Each clearing member must also be a member of the exchange. Not all members of the exchange, however, are members of the clearing organization. All trades of a non-clearing member must be registered with, and eventually settled through, a clearing member.
Clearing House
An adjunct to a futures exchange through which transactions executed its floor are settled by a process of matching purchases and sales. A clearing organization is also charged with the proper conduct of delivery procedures and the adequate financing of the entire operation.
Austraclear
An Australian computerised settlement and safe custody system for bills of exchange and cash transactions. The Austraclear system is a real-time system which members access from their premises. Austraclear records trades and changes of ownership and removes the need for bills of exchange or cash to physically change hands.
