A clearing house (or clearinghouse) is an organization affiliated with a securities or derivatives exchange that completes the transactions on that exchange by seeing to validation, delivery, and settlement. The word validation has several related meanings: In general, validation is the process of checking if something satisfies a certain criterion. ... Childbirth in a hospital. ... A reference to colonization, or the resulting communities. ...

A clearing house may also offer novation, the substitution of a new contract or debt for an old, or other credit enhancement services to its members. Novation is a term used in contract law and business law to describe the act of either replacing an obligation to perform with a new obligation, or replacing a party to an agreement with a new party. ... A contract is any legally-enforceable promise or set of promises made between parties. ... Debt is that which is owed. ...

The London Clearing House, for example, provides clearing and settlement services for the International Petroleum Exchange, London, which is affiliated with the Intercontinental Exchange, Atlanta, Georgia. The London Clearing House also acts as the clearing house for Euronext.liffe and the London Metals Exchange. The International Petroleum Exchange in London is one of the worlds premier energy futures and contracts exchange. ... London is the capital city of the United Kingdom and of England. ... Atlanta is the capital and largest city of Georgia, a state of the United States of America. ... Euronext. ...

In 2001, the United States' Commodity Futures Trading Commission registered the London Clearing House as a derivatives clearing organization (DCO) in the United States as well, making it the first offshore DCO to be recognized under the statutory mandate of the Commodity Futures Modernization Act of 2000. 2001: A Space Odyssey. ... The Commodity Futures Trading Commission (CFTC) is an independent agency of the United States Government, created by Congress in 1974. ... Clearing arrangements for exchange-traded derivatives FOREWORD The rapid growth of financial derivatives over the last decade has been the subject of numerous studies by central banks and regulatory authorities and by private sector groups. ... The Commodity Futures Modernization Act of 2000 or CFMA, was passed and signed by President William Jefferson Clinton in December 2000 in large part to allow for the creation of U.S. exchanges for the listing of a new sort of derivative security, the single-stock future. ...

In the United States, the National Automated Clearing House Association (NACHA) is an association that organizes the mechanism for the financial service institutions that partipate in the Automated Clearing House (ACH) network. These organizations use the ACH to transfer funds either as debits or credits between participating institutions. Most banks, but not all banks, in the US participate in this association. Typical uses of ACH transactions are for automatic payroll programs, monthly mortgage or membership payments, or among non-profit organizations, as a monthly donor/contribution program. The National Automated Clearing House Association (NACHA) is a leading organization developing electronic solutions to improve the ACH payment system. ... The Automated Clearing House (ACH) is a nationwide electronic banking network that processes large volumes of both credit and debit transactions which are originated in batches. ...

List of Major Clearing Houses

ADP Clearing

See also

• Clearing houses are also used by Railways and Airlines.
• The Railway Clearing Act 1850
• Clearing (finance)

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