QUICK DEFINITION
Clearing — The process of determining obligations between parties before final settlement.
WHY IT MATTERS
Why Clearing matters in finance
Failures in clearing can affect exposures, collateral requirements and the ability to complete trades.
FINANCIAL SYSTEM CONTEXT
← Back to the Financial Security GlossarySecurity is also a market-infrastructure question
In financial services, clearing should be understood in relation to operational continuity, data integrity, payments, market infrastructure and interconnected dependencies. A control can be technically effective while still leaving material resilience risk if critical services cannot continue or recover during disruption.