clearing member

A member of an exchange clearinghouse. Memberships in clearing organizations are usually held by companies. Clearing members are responsible for the financial commitments of customers that clear through their firm. Chicago Board of Trade glossary
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A clearinghouse member responsible for executing client trades. Clearing members also monitor the financial capability of their clients by requiring sufficient margins and position reports. The CENTER ONLINE Futures Glossary
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A member firm of a clearing house. Each clearing member must also be a member of the exchange. Not all members of the exchange, however, are members of the clearing organization. All trade of a non-clearing member must be registered with, and eventually settled through, a clearing member. Bloomberg Financial Dictionary
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A firm qualified and approved to clear trades through the CME clearing house. All clearing members not specifically designated as Class B members are considered Class A clearing members. There are three categories of clearing members:1) CME clearing members, qualified to clear transactions for all commodities;2) IMM clearing members, qualified to clear trades for only IMM and IOM commodities; and3) IMM Class B clearing members, solely limited to conducting proprietary arbitrage in foreign currencies between a single exchange-approved bank and the IMM, and who must be guaranteed by one or more Class A non-bank CME or IMM clearing member( s). Chicago Mercantile Exchange Glossary
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An entity which is a member of a clearing house and thus has the ability to clear transactions. Contrast with a non-clearing member, who cannot clear directly via the clearing house, and must therefore employ the services of a clearing member to clear trades on his behalf. Dresdner Kleinwort Wasserstein financial glossary
See also general clearing member and individual clearing member. Dresdner Kleinwort Wasserstein financial glossary
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A member of a clearing house that is permitted by the clearing house to clear trades with that clearing house. Euroclear Clearing and Settlement glossary
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A member firm of a clearing house. Exchange Handbook Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • Clearing member — A member firm of a clearing house. Each clearing member must also be a member of the exchange. Not all members of the exchange, however, are members of the clearing organization. All trades of a non clearing member must be registered with, and… …   Financial and business terms

  • clearing member — member of a financial clearinghouse, one who carries out securities trades and other financial transactions for customers (Finance) …   English contemporary dictionary

  • clearing member — A member of a clearing house that is permitted by the clearing house to clear trades with that clearing house …   Euroclear glossary

  • clearing member — / klɪərɪŋ ˌmembə/ noun a member firm of a stock exchange which is also a member of the stock exchange clearing house …   Dictionary of banking and finance

  • Clearing member —   A member firm of a clearing house …   International financial encyclopaedia

  • Clearing Member Trade Agreement - CMTA — An agreement by which an investor may enter derivative trades with a limited number of different brokers and later consolidate these trades with one brokerage house for clearing. When the position is consolidated, some brokers will give up their… …   Investment dictionary

  • Clearing Member Trade Agreement — ( CMTA) An agreement that allows a client to execute derivative trade through different brokers yet consolidate positions for clearing purposes at one brokerage firm. Bloomberg Financial Dictionary …   Financial and business terms

  • general clearing member — A clearing member of a clearing house who has the capacity to clear for the firm, its clients and other investment businesses. Contrast with individual clearing members, who can clear for the firm and its clients only, not for other investment… …   Financial and business terms

  • individual clearing member — A clearing member of a clearing house who has the capacity to clear for the firm and its clients only. Contrast with general clearing members, who can clear for the firm, its clients and other investment businesses. Dresdner Kleinwort Wasserstein …   Financial and business terms

  • non-clearing member — ( NCM) Firms who are not clearing members of a clearing house, and do not therefore have the capacity to clear. Such firms must use the services of a general clearing member in order to have their trades cleared. They are normally smaller firms… …   Financial and business terms

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