Legal Definitions - clearinghouse

A clearinghouse is a place where banks or other payors exchange checks and drafts and settle their daily balances. It can also refer to a stock-and-commodity exchange where brokers' daily transactions are cleared. Additionally, it can be any place for the exchange of specialized information.

• Example 1: A group of banks in a city have formed a clearinghouse to exchange checks and drafts. Each bank sends the checks and drafts they have received to the clearinghouse, which then sorts and settles the balances between the banks.
• Example 2: The New YorkStock Exchange is a clearinghouse for brokers to trade stocks and clear their transactions.
• Example 3: A medical research organization has created a clearinghouse for doctors to share information about rare diseases and treatments.

These examples illustrate how a clearinghouse can be used in different contexts to facilitate the exchange and settlement of information or transactions between parties.