answers: clearing house
context: required to ensure payment had been received and the physical stock certificate delivered. This caused a few days delay between the trade date and final settlement. To reduce the risk associated with failure to deliver on the trade on settlement date, a clearing agent or clearing house often sat between the trading parties. The trading parties would deliver the physical stock certificate and the payment to the clearing house, who would then ensure the certificate was handed over and the payment complete. This process is known as delivery versus payment. During the 1700s the Amsterdam Stock Exchange had close links </s> of payments systems: the liquidity efficiency of a netting system and the intraday finality of a RTGS." Organized in 1970 by eight New York banks who were members of the Federal Reserve system, CHIPS competes with the Federal Reserve for high value payments. Until 2001, CHIPS settled at the end of the day, but now provides intraday payment finality through a real-time system. Cheque clearing Cheque clearing (or check clearing in American English) or bank clearance is the process of moving cash (or its equivalent) from the bank on which a cheque is drawn to the bank in which it </s> settlement via a Central Securities Depository, specifically the Depository Trust Company (DTC), and ultimately its parent, the Depository Trust & Clearing Corporation. In the United Kingdom, the weakness of paper-based settlement was exposed by a programme of privatisation of nationalised industries in the 1980s, and the Big Bang of 1986 led to an explosion in the volume of trades, and settlement delays became significant. In the market crash of 1987, many investors sought to limit their losses by selling their securities, but found that the failure of timely settlement left them exposed. The electronic settlement system came about largely as
question: the process of instruments presented by a bank for clearing is called