Clearing house

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CLEARING HOUSE, com. law. Among the English bankers, the clearing house is a place in Lombard street, in London, where the bankers of that city daily settle with each other the balances which they owe, or to which they are entitled. Desks are placed around the room, one of which is appropriated to each banking house, and they are: occupied in alphabetical order. Each clerk has a box or drawer along side of him, and the name of the house he represents is inscribed over his head. A clerk of each house comes in about half past three o'clock in the afternoon, and brings the drafts or checks on the other bankers, which have been paid by his house that day, and deposits them in their proper drawers. The clerk at the desk credits their accounts separately which they have against him, as found in the drawer. Balances are thus struck from all the accounts, and the claims transferred from one to another, until they are so wound up and cancelled, that each clerk has only to settle with two or three others, and the balances are immediately paid. When drafts are paid at so late an hour that they cannot be cleared that day, they are sent to the houses on which they are drawn, to be marked, that is, a memorandum is made on them, and they are to be cleared the next day. See Gilbert's Practical Treatise on Banking, pp. 16-20, Babbage on the Economy of Machines, n. 173, 174; Kelly's Cambist; Byles, on Bills, 106, 110; Pulling's Laws and Customs of London, 437.

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The European Commission had unveiled plans to boost its oversight of clearing houses outside the EU.
ICE Clear Europe was established in 2008 as the UKs first new clearing house in over a century and today it provides clearing for thousands of futures and options products across a wide range of asset classes, as well as Credit Default Swaps (CDS).
For the protection of investors' interest and to boost investor confidence in the market, the regulations also provide for establishment of a fund by the clearing house to guarantee settlements of trades executed at a securities exchange.
Holland Clearing House is based in Amsterdam and is the primary clearing house for the TOM multi-lateral trading facility.
His lecture, "Clearing Houses and the Currency," fairly well summarized the major arguments that appeared in his book, Clearing Houses, which the National Monetary Commission published in 1910.
4 February 2014 -- Atlanta US-based exchange and clearing house operator IntercontinentalExchange Group (NYSE: ICE) said it has closed its acquisition of Singapore Mercantile Exchange following regulatory approval by the Monetary Authority of Singapore.
The EU's top regulator, Commissioner Michel Barnier, is already promoting the creation of an agency to wind down problem banks, but this does not apply to clearing houses and insurers.
Under the first proposal by the SEC, individual clearing house members will not be able to own more than 20% of any voting interest in a security-based swap clearing agency, rising to 40% if done in conjunction with any other clearing house members.
In line with the IOSCO principles, a clearing house will also be required to appoint a chief risk officer with segregated reporting lines for ensuring implementation of risk management policies.
ICE currently operates five clearing houses, and is preparing for the launch of ICE Clear Singapore.
29) per share for a majority of LCH in response to the new European rules requiring clearing houses to boost their capital.

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