Clearing Agency definition: Copy, customize, and use instantly
Introduction
The term "Clearing Agency" refers to a financial institution that facilitates the settlement and clearance of securities transactions between buyers and sellers. It plays a crucial role in ensuring smooth and efficient securities trading by acting as an intermediary.
Below are various examples of how "Clearing Agency" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Clearing Agency" for securities settlement
This definition ties "Clearing Agency" to its role in securities transactions.
"Clearing Agency" means a financial entity that facilitates the settlement of securities trades, ensuring the transfer of securities and funds between buyers and sellers according to established market practices.
Definition of "Clearing Agency" in the context of a central counterparty
This definition connects "Clearing Agency" to its role as a central counterparty.
"Clearing Agency" refers to an organization that acts as an intermediary between buyers and sellers in a financial transaction, guaranteeing the performance of both parties in the event of default.
Definition of "Clearing Agency" in relation to financial market regulation
This definition links "Clearing Agency" to its regulatory function.
"Clearing Agency" means a regulated financial institution responsible for managing the clearing and settlement of securities transactions in compliance with relevant securities laws and market regulations.
Definition of "Clearing Agency" for risk management
This definition ties "Clearing Agency" to risk mitigation.
"Clearing Agency" refers to an institution that manages financial risk in the settlement of securities transactions by requiring participants to post collateral and providing guarantees against default.
Definition of "Clearing Agency" in relation to netting
This definition connects "Clearing Agency" to netting practices.
"Clearing Agency" means an institution that performs the netting of securities trades, reducing the volume of trades that need to be settled and minimizing the risk of counterparty default.
Definition of "Clearing Agency" in the context of securities custody
This definition ties "Clearing Agency" to custody functions.
"Clearing Agency" refers to an organization responsible for holding and safeguarding securities on behalf of market participants, ensuring proper settlement and transfer in compliance with market rules.
Definition of "Clearing Agency" for trade matching
This definition links "Clearing Agency" to trade matching.
"Clearing Agency" means an institution that matches and reconciles securities trades between buyers and sellers to ensure accurate settlement instructions and minimize operational errors.
Definition of "Clearing Agency" in a financial infrastructure context
This definition connects "Clearing Agency" to financial infrastructure.
"Clearing Agency" refers to a critical component of the financial market infrastructure, providing the systems and processes necessary for the clearance and settlement of securities transactions.
Definition of "Clearing Agency" in a corporate action context
This definition ties "Clearing Agency" to corporate actions.
"Clearing Agency" means an organization responsible for processing corporate actions, such as dividend payments and stock splits, on behalf of securities holders.
Definition of "Clearing Agency" for regulatory compliance
This definition links "Clearing Agency" to regulatory requirements.
"Clearing Agency" refers to an institution that is required to comply with regulatory requirements set by securities regulators, ensuring that its activities align with market laws and standards.
Definition of "Clearing Agency" in a cross-border context
This definition ties "Clearing Agency" to cross-border operations.
"Clearing Agency" means an institution that facilitates the clearing and settlement of international securities transactions, adhering to the global standards for cross-border financial activities.
Definition of "Clearing Agency" in the context of trade execution
This definition connects "Clearing Agency" to trade execution.
"Clearing Agency" refers to an entity that facilitates the completion of a trade by ensuring the settlement and transfer of securities, once the trade is executed by market participants.
Definition of "Clearing Agency" in relation to electronic systems
This definition links "Clearing Agency" to technology.
"Clearing Agency" means an organization that utilizes electronic systems for the processing and settlement of securities transactions, enhancing the efficiency and speed of the clearing process.
Definition of "Clearing Agency" for derivatives transactions
This definition ties "Clearing Agency" to derivatives markets.
"Clearing Agency" refers to a financial institution that clears and settles derivative transactions, ensuring the completion of trades and mitigating risk for both buyers and sellers.
Definition of "Clearing Agency" in a credit risk context
This definition connects "Clearing Agency" to credit risk management.
"Clearing Agency" means an institution that manages credit risk by acting as the counterparty to all trades in a clearinghouse arrangement, protecting market participants from defaults.
Definition of "Clearing Agency" in relation to settlement cycles
This definition links "Clearing Agency" to settlement timing.
"Clearing Agency" refers to an institution that oversees the timely and accurate settlement of securities trades according to prescribed settlement cycles, ensuring that transactions are completed within the agreed timeframes.
Definition of "Clearing Agency" for centralized clearing
This definition ties "Clearing Agency" to central clearing systems.
"Clearing Agency" means a centralized institution that performs the clearing function for securities markets, enabling multiple participants to settle transactions through a single clearing platform.
Definition of "Clearing Agency" in a financial institution context
This definition connects "Clearing Agency" to its status as a financial institution.
"Clearing Agency" refers to a financial institution that plays a key role in the settlement of securities transactions, providing services to market participants involved in buying and selling financial instruments.
Definition of "Clearing Agency" for liquidity management
This definition links "Clearing Agency" to liquidity management.
"Clearing Agency" means an institution that provides liquidity services to ensure that funds and securities are available for settlement when needed, reducing the likelihood of settlement failures.
Definition of "Clearing Agency" in a financial product context
This definition ties "Clearing Agency" to specific financial products.
"Clearing Agency" refers to an entity that facilitates the clearing and settlement of financial products, including bonds, equities, and derivatives, ensuring the proper completion of transactions in the financial markets.
Definition of "Clearing Agency" for investor protection
This definition connects "Clearing Agency" to investor security.
"Clearing Agency" means an institution that provides investor protection by ensuring that securities transactions are settled securely and that funds are transferred in a timely and accurate manner.
Definition of "Clearing Agency" in a default scenario
This definition ties "Clearing Agency" to default management.
"Clearing Agency" refers to an institution that steps in to guarantee the completion of transactions in the event of a default by a market participant, thus protecting the integrity of the financial market.
Definition of "Clearing Agency" for clearing funds
This definition links "Clearing Agency" to the clearing of funds.
"Clearing Agency" means an institution that clears funds to facilitate the settlement of securities transactions, ensuring that both the buyer and the seller receive the appropriate financial compensation.
Definition of "Clearing Agency" in the context of trade settlement
This definition ties "Clearing Agency" to the settlement process.
"Clearing Agency" refers to a financial entity that facilitates the final settlement of securities trades, ensuring the proper exchange of securities and funds in compliance with market rules.
Definition of "Clearing Agency" for financial market stability
This definition connects "Clearing Agency" to market stability.
"Clearing Agency" means an institution that helps maintain the stability of financial markets by efficiently clearing and settling securities transactions, reducing systemic risk.
Definition of "Clearing Agency" for transaction processing
This definition links "Clearing Agency" to transaction handling.
"Clearing Agency" refers to an organization responsible for the processing and finalization of securities transactions, ensuring that all trades are correctly completed and settled.
Definition of "Clearing Agency" in a legal liability context
This definition ties "Clearing Agency" to legal responsibilities.
"Clearing Agency" means an institution that assumes legal liability for the clearing and settlement of securities transactions, ensuring compliance with contractual obligations and applicable laws.
Definition of "Clearing Agency" in the context of market participants
This definition connects "Clearing Agency" to market participants.
"Clearing Agency" refers to an entity that provides clearing services to market participants, including brokers, dealers, and institutional investors, ensuring the secure and efficient settlement of transactions.
Definition of "Clearing Agency" for international market access
This definition ties "Clearing Agency" to global market access.
"Clearing Agency" means an institution that facilitates access to international markets, enabling the clearing and settlement of cross-border securities transactions for global market participants.
Definition of "Clearing Agency" for financial risk assessment
This definition links "Clearing Agency" to risk evaluation.
"Clearing Agency" refers to an organization that assesses financial risk associated with securities transactions, including market risk, credit risk, and operational risk, to ensure the smooth settlement of trades.
Definition of "Clearing Agency" in relation to collateral management
This definition connects "Clearing Agency" to collateral operations.
"Clearing Agency" means an institution that manages collateral for market participants to ensure that securities trades are properly secured and that any risk exposure is minimized.
Definition of "Clearing Agency" in a transaction confirmation context
This definition ties "Clearing Agency" to transaction validation.
"Clearing Agency" refers to an entity that confirms the details of a securities transaction, ensuring that both parties agree to the terms and that the trade can proceed to settlement.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.