A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z

What is clearing?

Financial market participants are exposed to a variety of risks. One of the main risks is settlement risk: the risks that a buyer will not receive their goods or securities, or that a seller will not receive payment, once a transaction has been completed. The volumes in the markets are usually so large that failures of this type can have a major impact on the entire market and can lead to a systemic risk that could be fatal for the financial community. 

Banking clearing is the mechanism that allows financial institutions to settle amounts due and to receive assets corresponding to the transactions they have carried out on the markets. Clearing offers security to the financial markets.

The role of clearing houses is to reduce the clearing risk for participants who are members of the same clearing house. The clearing house acts as an intermediary between the buyer and the seller, who are in fact no longer directly linked by law. The counterparties to the transaction therefore contract directly with the clearinghouse. 

What is an operation by netting? 

Netting is carried out by aggregating all the positions of each member of the clearing house by type of product. This leads to a net balance, either of cash or securities, to be paid or received by each member. 

Watch also the “What is a clearing house?” video

Discover

Our Prime Service & Clearing Solutions

Our latest news and insights

The Rise of Active ETFs
Insights from Sébastien Lemaire, Head of ETF Research at Societe Generale.
Expert views
Insights from Sébastien Lemaire, Head of ETF Research at Societe Generale.
The Rise of Active ETFs
Powering Electric Vehicle Adoption with Osprey in the UK
Osprey Charging is contributing to the energy transition through the rapid roll out of their EV charging infrastructure....
News & Insights
Osprey Charging is contributing to the energy transition through the rapid roll out of their EV charging infrastructure. Societe Generale acted as Arranger & Hedging Provider in the £110m in senior debt facilities transaction that will support Osprey’s charging network development in the country.
Powering Electric Vehicle Adoption with Osprey in the UK
Societe Generale gains ground in fixed income trading push
Hatem Mustapha and Francisco Oliveira are co-heading Societe Generale Global Markets business. Together, they answered...
Expert views
Hatem Mustapha and Francisco Oliveira are co-heading Societe Generale Global Markets business. Together, they answered Christopher Whittall’s questions in an article published in International Financial Review (IFR) on 4 July 2025.
Societe Generale gains ground in fixed income trading push
More results google link