Chapter 04 · Section 4.1

Trade Matching

Assures the financial integrity of the market.
Matches trades and facilitates the flow and transfer of funds.
Provides a mechanism for delivery or cash settlement.

This role is more important for non-automated exchanges. In the case of automated exchanges, the clearing house takes over the data from the exchange computer.

Clearing houses of non-automated exchanges receive the trading data all purchases and all sales) from their clearing members and use it to update every clearing member's position after cross checking with the data of the counterparty to each trade.