- Home
- Meet the Team
- Log In
- Contact
- Careers
- Search
- Search Results
- Branches & ATMs
- Rates
- Log In
- About MCU
- Join MCU
- Personal Banking
- Lending
- Credit Cards
- Lending Services
- Insurance
- Member Resources
- MCU Financials
- Forms and Disclosures
- Privacy Policy
- Automated Telephone Banking
- Order New Checks
- Security & Fraud Alerts
- Privacy Notice
- Schedule an Appointment
Clearing House
An institution that processes financial transactions, such as the exchange of securities, between two parties.
More Details
A clearing house is a financial institution that acts as an intermediary between two parties in a financial transaction. Its main function is to ensure the smooth and efficient settlement of transactions between the two parties.
Example
If you were to buy shares of a publicly traded company through a brokerage firm, the trade would be cleared through a clearing house. This helps to reduce risk and increase the efficiency of your transaction.
Related Terms
Certified Check
A check that has been certified by the bank as having sufficient funds to cover the full amount, with the bank guaranteeing payment.
Clearing House
An institution that processes financial transactions, such as the exchange of securities, between two parties.
Asset
A resource owned by an individual or organization that has economic value, such as cash, investments, and property.