Examples of clearinghouse in a Sentence
an online clearinghouse for information on museums around the world
Recent Examples of clearinghouse from the Web
The nonprofit has been a clearinghouse for missing kids under the age of 20 since it was founded in 1984.
Photo Illustration/Getty Images While Donald Trump was running for President, his Twitter account was an obnoxious clearinghouse of racist MAGA nationalism, unfounded attacks on his opponents, and Pepe avatar replies.
Bowden had not been with the team throughout the first week as UK waited for the NCAA clearinghouse to approve his academic eligibility.
Designed by a group of techies in Oregon, the app was intended to be a clearinghouse where bands and musicians could be hired directly, cutting out the booking-agent middlemen.
But the central bank would have the power to monitor clearinghouse operations and take action in a crisis.
Manfra said the agency has also worked with the federal Election Assistance Commission, an information clearinghouse for states, to share some information.
For patients, this can seem like an elaborate, never-ending maze—and there is no central clearinghouse for the information.
Building off of 300 million mod downloads for Fallout 4 and Skyrim, Bethesda announced Creation Club, a new, more integrated in-game modding clearinghouse.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'clearinghouse.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of clearinghouse
Financial Definition of CLEARINGHOUSE
What It Is
A clearinghouse is an intermediary between buyers and sellers of financial instruments.
How It Works
Clearinghouses take the opposite position of each side of a trade. When two parties agree on the terms of a transaction, a clearinghouse sits in the middle, acting as both the buyer and the seller. Clearinghouses exist to ensure the smooth functioning of financial markets. Fewer transactions would take place if sellers were worried that buyers would refuse to pay them, and vice versa. A clearinghouse ensures that transactions happen as planned.
For example, if you agree to sell your 100 shares of Company XYZ to John for $10,000, the clearinghouse ensures that John is delivered the 100 shares and you are delivered $10,000. It also records and reports the transaction to everyone involved. Either way, the clearinghouse is responsible for ensuring that the transaction happens in an accurate and timely manner.
Clearinghouses operate in most areas of the business world. For example, in the futures markets, clearinghouses ensure that the buyers and sellers fulfill their obligations related to the futures contract being traded and oversee the proper delivery of the underlying instrument. A country's central bank (e.g. the Federal Reserve in the U.S.) acts as a clearinghouse for checks, interbank payments, foreign exchange transactions, and other fund transfers in the banking system.
Why It Matters
Clearinghouses, acting as middlemen between buyers and sellers, provide both efficiency and stability to the financial markets they serve. However, they take on a high amount of risk because they act as both buyer and seller for a brief moment in almost every transaction. If a buyer fails to pay for the securities he has purchased, the clearinghouse must seek recovery of the funds or wait for them to become available.
Because the clearinghouse is on the hook if either party defaults on their agreement, they generally will not process transactions for traders who take on too much risk. To mitigate risk, clearinghouses also often require traders to deposit additional funds into their brokerage accounts in order to maintain minimum "margin requirements." These funds ensure that the clearinghouse will have access to enough funds to offset losses incurred by traders to get in over their heads and fail to meet their financial obligations.
CLEARINGHOUSE Defined for English Language Learners
Definition of clearinghouse for English Language Learners
: a business that banks use to exchange checks and money between them
: an organization that collects and gives out information about a specific thing
legal Definition of clearinghouse
Seen and Heard
What made you want to look up clearinghouse? Please tell us where you read or heard it (including the quote, if possible).