Clearing House

Intermediary guaranteeing trade settlement between parties

What is Clearing House?

Clearing House An intermediary that stands between buyers and sellers in financial markets, guaranteeing that both parties fulfill their obligations. For options, the OCC serves as the clearing house, ensuring that exercise and assignment obligations are met. This eliminates the risk of one party defaulting on their obligation.

Complete Definition

An intermediary that stands between buyers and sellers in financial markets, guaranteeing that both parties fulfill their obligations. For options, the OCC serves as the clearing house, ensuring that exercise and assignment obligations are met. This eliminates the risk of one party defaulting on their obligation.