An EXCHANGE member that is permitted to clear trades directly with the CLEARINGHOUSE, and which can accept trades for other clearing members and NONCLEARING MEMBERS. CLEARINGHOUSE (1) In the DERIVATIVES market, a subsidiary or division of an EXCHANGE or an independently owned entity that is responsible for CLEARING listed FUTURES and OPTIONS trades, computing and collecting daily MARGIN, and arranging for SETTLEMENT of financial or physical ASSETS related to trades. The CREDIT RISK normally associated with derivatives is neutralized as participants face the CLEARINGHOUSE, rather than each other, as their COUNTERPARTY. (2) In banking, a group of institutions that exchanges checks, drafts, and payment orders on a net basis, resulting in the creation of clearinghouse funds that are accessible within one to three business days. (2) See also CLEARINGHOUSE AUTOMATED PAYMENT SYSTEM, CLEARINGHOUSE INTERBANK PAYMENT SYSTEM.