Skip to main content
Learn

What Is the Role of the Clearing House in the Settlement Process?

The clearing house guarantees contract performance, manages settlement, and mitigates counterparty risk.
Greeks.Live03.11.25

What Is the Role of the Clearing House in the Settlement Process?

The clearing house acts as an intermediary, becoming the buyer to every seller and the seller to every buyer. Its main role is to guarantee the performance of the contract, mitigating counterparty risk.

It manages the settlement process, ensures timely delivery or cash transfer, and handles margin requirements for all participants.

What Is ‘Counterparty Risk’ and How Does a Prime Broker Help Mitigate It?
How Does Credit Intermediation by a Prime Broker Function in a Derivatives Trade?
What Is the Difference between a CCP and a Settlement Institution?
What Is the Role of a Clearing House in Managing Counterparty Risk?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.