Business and Personal Finance Dictionary

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 

• CLEARING MEMBER
  
  Clearing members of the New York Mercantile Exchange accept responsibility for all trades cleared through them, and share secondary responsibility for the liquidity of the Exchange’s clearing operation. They earn commissions for clearing their customers’ trades, and enjoy special margin privileges. Original margin requirements for clearing members are lower than for non-clearing members and customers, and clearing members may use letters of credit posted with the clearinghouse as original margin for customer accounts as well as for their own trades. Clearing members must meet a minimum capital requirement.
  
  Back