Recruiter's Glossary

Examples: Bloomberg Terminal • Order Management System • Liquidity Management

Clearing House

Term from Financial Services industry explained for recruiters

A Clearing House is like a middle-man organization that helps make sure financial trades and payments happen safely and correctly. Think of it as a trusted referee in financial transactions that stands between buyers and sellers to reduce risk. They make sure that when people or companies trade stocks, bonds, or other financial items, both sides keep their promises - the seller delivers what they sold and the buyer pays for it. This system is essential in banking, stock trading, and other financial services. You might see it referred to as "CCP" (Central Counterparty Clearing) or "clearinghouse" in job descriptions.

Examples in Resumes

Managed daily reconciliation processes through Clearing House systems

Coordinated with Clearing House operations to ensure accurate settlement of trades

Led team handling Clearing House reporting and compliance requirements

Typical job title: "Clearing Operations Professionals"

Also try searching for:

Clearing Operations Specialist Clearing Manager Settlement Officer Clearing Operations Analyst Trade Settlement Specialist Clearing Risk Manager Operations Associate

Where to Find Clearing Operations Professionals

Professional Associations

Job Boards

Professional Networks

Example Interview Questions

Senior Level Questions

Q: How would you handle a major clearing system outage during peak trading hours?

Expected Answer: A senior professional should discuss business continuity plans, communication protocols with stakeholders, backup systems, and risk management procedures. They should emphasize client communication and regulatory reporting requirements.

Q: Describe your experience with clearing house risk management strategies.

Expected Answer: They should explain how to assess and manage clearing risks, including margin requirements, default procedures, and regulatory compliance. Should demonstrate understanding of both operational and financial risk aspects.

Mid Level Questions

Q: What are the key components of the trade clearing process?

Expected Answer: Should explain the steps from trade execution to settlement, including matching, confirmation, netting, and final settlement. Should understand the roles of different parties involved.

Q: How do you ensure accurate reconciliation between trading systems and clearing house reports?

Expected Answer: Should describe daily reconciliation processes, common discrepancies, resolution procedures, and tools used to maintain accuracy in clearing operations.

Junior Level Questions

Q: What is the basic function of a clearing house?

Expected Answer: Should explain how clearing houses act as intermediaries in financial transactions, ensuring trades are settled properly and reducing risk for both parties.

Q: What are the typical daily tasks in clearing operations?

Expected Answer: Should describe basic activities like transaction monitoring, report generation, simple reconciliation tasks, and communication with various departments.