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What is the role of a Futures Clearing House?
Does the Clearning House act as an intermediary organization between the investor and the financial institution?
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| September 25, 2009 04:22 PM |
OK now for the serious answer
"What Does Clearing House Mean?
An agency or separate corporation of a futures exchange responsible for settling trading accounts, clearing trades, collecting and maintaining margin monies, regulating delivery and reporting trading data. Clearing houses act as third parties to all futures and options contracts - as a buyer to every clearing member seller and a seller to every clearing member buyer."
See below for more information
http://www.investopedia.com/terms/c/clearinghouse.asp
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