Clearinghouse
/ˈklɪərɪŋˌhaʊs/
Definitions
- (n.) An intermediary entity that facilitates the exchange, settlement, and reconciliation of transactions, often in financial or commodity markets.
The clearinghouse ensures all trades are settled correctly and on time.
- (n.) A centralized agency that collects, processes, and disseminates information, especially credit or legal information, to assist in risk management and decision making.
The credit clearinghouse provided vital data to assess the borrower's eligibility.
Forms
- clearinghouses
Related terms
Commentary
In legal drafting, distinguish clearly between financial transaction clearinghouses and informational clearinghouses to avoid ambiguity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.