Clearing is the process of financial guarantee between clearing members. This activity intends to eliminate the risk of contractual or transactional default. For example, two clients execute a trade through two different clearing member firms. The clients are solvent but at the end of the day one of the clearing members is not. This transaction through a clearinghouse would preserve the integrity of the trade.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). clearing. Retrieved September 23, 2026, from http://smartdefine.org/clearing/definitions/1149965 |
| Chicago | Barry Goldsmith. 2010. "clearing" http://smartdefine.org/clearing/definitions/1149965 (accessed September 23, 2026). |
| Harvard | Barry Goldsmith 2010, clearing, Smart Define, viewed 23 September, 2026, <http://smartdefine.org/clearing/definitions/1149965>. |
| MLA | Barry Goldsmith. "clearing" 21 October 2010. Web. 23 September 2026. <http://smartdefine.org/clearing/definitions/1149965> |