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

Societe Generale awarded "Sustainability Aviation Bank of the Year" by Airline Economics Magazine
​Societe Generale has been recognized by Airline Economics Magazine as:
Awards & Rankings
​Societe Generale has been recognized by Airline Economics Magazine as:
Societe Generale awarded "Sustainability Aviation Bank of the Year" by Airline Economics Magazine
Societe Generale shines at the GlobalCapital Derivatives Awards 2025
These recognitions come in a year marked by a rapidly changing macro environment and evolving client needs.
Awards & Rankings
These recognitions come in a year marked by a rapidly changing macro environment and evolving client needs.
Societe Generale shines at the GlobalCapital Derivatives Awards 2025
Travelling Companions: Treasury’s Journey towards Instant Payments
Instant payments have come far in treasury but there’s still a long way to go before it becomes the norm. Societe...
Expert views
Instant payments have come far in treasury but there’s still a long way to go before it becomes the norm. Societe Generale’s Emmanuelle Fischer, Head of Payments and Cash Management, explores the roadmap and reveal the bank’s readiness to accompany its corporate clients on their journey.
Travelling Companions: Treasury’s Journey towards Instant Payments
More results google link