Clearing Organization

What is Clearing Organization?

Clearing Organization meaning An entity through which futures and other derivative transactions are cleared andsettled. It is also charged with assuring the proper conduct of each contract’sdelivery procedures and the adequate financing of trading. A clearing organization may be a division of a particular exchange, an adjunct or affiliate thereof, or a freestanding entity. Also called a clearing house, multilateral clearing organization, central counterparty, or clearing association. A clearing organization that is registered with the CFTC is known as a Derivatives Clearing Organization. SeeCentral Counterparty.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary

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