The Clearing House Interbank Payments System (CHIPS) is a U.S. private-sector, real-time interbank payments system for the transfer of large value transactions.
A clearing house is a centralized and computerized system for settling indebtedness between members, enabling efficient offsetting of claims for direct debits and credits.
CHIPS is a U.S. bank clearinghouse for large-value dollar transactions, owned by financial institutions and operated by the Clearing House Payments Company. It facilitates the efficient settlement of large financial transactions between banks.
A futures contract is a standardized legal agreement to buy or sell a particular commodity, currency, or financial instrument at a predetermined price at a specified time in the future. Unlike options, futures contracts entail a mandatory obligation to execute the transaction.
LCH.Clearnet, now known simply as LCH, is a leading global clearing house that provides clearing and risk management services for various asset classes including equities, bonds, exchange-traded derivatives, commodities, and over-the-counter (OTC) derivatives.
LCH is a leading multi-asset clearing house established in 1888, providing risk management, netting, and settlement services. It became well-known as the International Commodities Clearing House before merging with Clearnet in 2003 to form LCH.Clearnet.
Netting is the process of offsetting matching sales and purchases against each other, particularly in the context of futures, options, and forward foreign exchange. It helps firms manage risks such as exchange-rate exposure and is often facilitated by a clearing house.
