Clearing system

A set of procedures whereby financial institutions present and exchange data and/or documents relating to funds or securities transfers to other financial institutions.

The procedures often also include a mechanism for the calculation of participants’ bilateral and/or multilateral net positions with a view to facilitating the settlement of their obligations on a net or net net basis.

See also

• Cheque truncation
• Clearing
• Clearing house
• Settlement
• CertICM