What is a clearing house & how does it work?

A clearing house is a financial institution formed to facilitate the exchange (i.e., clearance) of payments, securities, or derivatives transactions. The clearing house stands between two clearing firms (also known as member firms or participants). Its purpose is to reduce the risk of a member firm failing to honor its trade settlement obligations.

Is the school a clearing house?

The school is a social clearing house for the neighborhood. Someday we will have to establish a clearing house in science instead of keeping it in tight little compartments as we do at present. It, too, formed a clearing house for assistance.

When were clearing houses invented?

Clearing houses were first proposed in 1636 by Philip Burlamachi, financier to Charles I of England. [citation needed] The origins of clearing houses date back to bank cheque clearing in the 18th century.

Why is a Quai a clearing house?

It, too, formed a clearing house for assistance. In addition to being a receiving station, this quai performed steady service as a sorting station or clearing house. It is the great clearing house of human intelligence where knowledge is mutually exchanged and every one can learn what the rest know.