clearing house
A "clearing house" serves as a crucial intermediary in financial and information systems, ensuring smooth exchanges and reducing risks.
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Definition
C1Finance
(technical, formal)An institution that facilitates and guarantees the exchange of payments, securities, or derivatives between parties, ensuring both meet their obligations.
Example
- The clearing house ensures that the transaction between the buyer and seller is completed smoothly.
- By using a clearing house, banks can reduce the risk of default in financial transactions.
C1Information Systems
(technical, formal)A central hub for collecting, storing, and distributing data or information, often streamlining processes and reducing risks.
Example
- The clearing house collects and distributes data to various agencies efficiently.
- Researchers rely on the clearing house to access up-to-date information.
Similar
Terms that have similar or relatively close meanings to "clearing house":