1.3.4.4.1. The Clearinghouse
A party to a futures transaction must either be a clearing firm or utilize the services of one. A clearing firm (also called a clearing broker) is an organization associated with an exchange that facilitates the confirmation, delivery, and settlement of transactions. Most futures commission merchants are also clearing firms. Members of a futures exchange that are non-clearing members, such as introducing brokers and executing brokers that are not self-clearing, must contract with a clearing firm to perform the back-office functions of their trading activities.
The clearing firm must be a member of a clearinghouse. Each futures exchange has an associated clearinghouse, which may be owne
