Important clearing houses
Trade clearing houses are entities that act as intermediaries between buyers and sellers in financial transactions, helping to facilitate the settlement process. Here are some examples of trade clearing houses across the globe:
Depository Trust Company (DTC): DTC is the main clearinghouse for securities in the United States, providing settlement services for equities, corporate bonds, municipal bonds, and other securities.
Clearstream: Clearstream is a clearinghouse based in Luxembourg that offers settlement and custody services for securities traded in Europe, including equities, bonds, and funds.
Euroclear: Euroclear is a Brussels-based clearinghouse that offers settlement services for securities traded in Europe, including equities, bonds, and funds.
Crest: Crest is the UK’s central securities depository, offering settlement services for securities traded in the UK, including equities, bonds, and government securities.
Japan Securities Clearing Corporation (JSCC): JSCC is the main clearinghouse for securities in Japan, providing settlement services for equities, corporate bonds, and government securities.
These trade clearing houses play a critical role in ensuring the smooth functioning of financial markets by providing efficient and secure settlement services for securities transactions. They help to reduce counterparty risk, enhance liquidity, and improve transparency in the trading process.