clearing procedures and securities markets(2)

the process can be facilitated even more by a clearing house, the member of which are security brokerage firms, banks, and the like. Records of transaction made by members during a day are sent there. At the end of the day both sides of the trades are verified for consistency, then all transactions are netted out. Each member receives a list of the net amounts of securities to be delivered or received along with the net amount of money to be paid or collected. Every day each member settles once with the clearing house instead of many times with various other firm.
A centralized clearing house, operated by the national Securities Clearing Corporation , handles trades made on the New York and American stock exchanges and in the over-the-counter market. Some regional exchanges also maintain clearing houses. Not all exchange members. join such organization; some choose to use the services of other members. Some banks belong, in order to facilitate delivery of securities which serve as collateral for call loans and so on .