The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

CLEARINGHOUSE Definition & Legal Meaning

Definition & Citations:

1. In Banking, it is a bank-operated affiliated agency or facility within a geographical area. It acts as a central site for collecting, exchanging, and settling of checks drawn on each other. Electronic funds transactions are also cleared by modern clearance houses. 2. In Futures, this is a governing exchange’s agency or affiliate, such as a stock exchange. It acts as a counter-party to every transaction on that exchange. Its accountability includes guaranteeing, reconciling, settling, collecting, and clearing, on all trades.


This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.