1. In Banking, it is a bank-operated affiliated agency or facility within a geographical area. It acts as a central site for collecting, exchanging, and settling of checks drawn on each other. Electronic funds transactions are also cleared by modern clearance houses. 2. In Futures, this is a governing exchange’s agency or affiliate, such as a stock exchange . It acts as a counter-party to every transaction on that exchange. Its accountability includes guaranteeing, reconciling, settling, collecting, and clearing, on all trades.
Black’s Law Online Dictionary
