Clearing Houses are firms that provide various services to derivatives and stock exchanges. Clearing Houses ‘clear’ trades on exchanges, in other words they handle most of the administrative processes of transactions, including confirmation and matching, post trade position keeping and oversee parts of the delivery and settlement processes.
Key learning objectives:
What is a clearing house, and what are their main functions?
What are the various types of margin applied to contracts?
What is the benefit of posting an initial margin?
What happens when a clearing member fails to meet any of its margin obligations?
Introduction to Interest Rate Swaps and Use Cases
David Leeming • 17:58