Dictionary of Banking Terms: clearing corporation
clearing corporation
organization affiliated with a financial exchange through which brokers, financial institutions, and other parties settle trades efficiently and with minimum paperwork. Clearing corporations handle the validation, delivery, and settlement of securities transactions. Examples are the Depository Trust and Clearing Corporation (DTCC; formerly Depository Trust Company), National Securities Clearing Corporation (a DTCC subsidiary), and the Fixed-Income Clearing Corporation, created in 2003 with the merger of the Government Securities Clearing Corporation and the MBS Clearing Corporation.
