what is the purpose of the clearing houses

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0008

I don't understand the purposes of the clearing houses.

Some people said even your broker is OK, if the clearing houses of your broker collapsed, your money and assets would be in trouble. Is it true?

If you buy a seat in the exchange do you still need to go throught the clearing houses?

Thank for any comment.
 
How about the futures? There is no cert or paper. If I won and someone losed, it is OK provided I could get the money from the exchange. I assumed the broker of the loser would debit the money from him and gave to the ex and ex would give it to the broker of the winner. Is this correct?
 
Quote from 0008:

I don't understand the purposes of the clearing houses.

Some people said even your broker is OK, if the clearing houses of your broker collapsed, your money and assets would be in trouble. Is it true?

If you buy a seat in the exchange do you still need to go throught the clearing houses?

Thank for any comment.
More...

Clearing is part of the settlement process. Settlement occurs for all contracts and is a necessary - and regulated - step. To read about the settlement process you can start at the cme.com and go to the clearing link. Also, you can read more general results realted to financial settlement at the federal reserve websites - the new york fed site is probably the best.
 
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