Clearing

The procedure through which the clearing organizationAn entity through which futures and other derivative transactions are cleared and settled. It is also becomes the buyerA market participant who takes a long futures position or buys an option. An option buyer is also called to each sellerA person who makes a transfer of title to real estate. of a futures contractAn agreement to purchase or sell a commodity for delivery in the future: (1) at a price that is determined or other derivativeA generic term often applied to a wide variety of financial instruments that derive their cash flows,, and the seller to each buyer for clearing members.