What are Clearing Firms?
Also known as clearing houses or corporations, the clearing firm is a business that provides settlement and clearing services on various types of financial transactions. Clearing firms function within the rules and regulations set in place by the government where the firm operates. In some countries, clearing corporations offer a wide range of services, including monitoring the number of private bank notes issued within a specified period of time. The clearing corporation, or firm, is involved with all types of financial transactions, including investment activity. Bond derivatives and the trading of futures are two examples of the kinds of transactions handled by clearing firms. In addition, the firms provide the mechanism that makes it possible to conduct a wide range of funds transfers between both domestic and international banking firms. Many people rely on the work of clearing firms in order to receive their weekly or monthly paycheck. In the United States, the Automated Clearing
