Chapter 04 · Section 4.1

Clearing System

• The clearing system and process is structured hierarchically
• Most clearing members also act as brokers and have their own clients.
• Those clearing members who clear for other exchange members are called General Clearing Members.
• Those clearing members who clear only their own and their client's traders are called Directed Clearing Members.
• Clearing house membership is generally more restrictive than exchange membership.
• In cases where the exchange is the same as the clearing house, the distinction between exchange and clearing membership remains.