the.com/clearinghouses
the middlemen who make sure everyone's promises to pay actually get kept.
means an institution that sits between buyers and sellers in a market, netting out who owes what to whom so trades settle safely.
from born in 1770s london coffeehouses where bank clerks got tired of running coins across town all day and started swapping ious in one room instead.
novation trickclearinghouse becomes buyer to every seller, seller to every buyer
2008 lessonaig nearly died from uncleared derivatives, rules changed after
netting powercan collapse millions of trades into one net payment
for instance
dtcc — clears trillions in us securities trades daily
lch — london clearinghouse handles most of the world's interest rate swaps
cme clearing — chicago exchange arm that guarantees futures and options trades
nscc — clears nearly all us stock trades since the 1970s