Clearing house (finance)

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Clearing house (finance). 1 connected concept: Futures contract (related to).

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Community · Futures contract

Summary

A clearing house, often written as clearinghouse, is a financial institution formed to facilitate the exchange of payments, securities, or derivatives transactions.

22 words

Connections1

intermediary that guarantees performance of futures contracts
The clearing house acts as the buyer to every seller and the seller to every buyer, mitigating counterparty risk and ensuring contract fulfillment.
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