Clearing Broker

A Clearing Broker is a financial intermediary, typically a member of a major exchange or clearing house, responsible for the post-trade processing of securities transactions, including trade confirmation, settlement, and the maintenance of customer accounts and records. Their critical function involves ensuring the timely and accurate exchange of funds and securities between the buyer and seller, thereby mitigating counterparty risk in markets such as U.S. Treasury securities, corporate bonds, and repurchase agreements (Repos).