This article will share with you the knowledge of liquidation institutes ~
The liquidation institute is a liquidation settlement setting established with the development of futures transactions and the emergence of standardized futures contracts .In the development of futures transactions, the establishment of the liquidation office and improved the futures trading system .The futures trading can be successfully carried out in the futures exchange , so it has become the core of the futures market operating mechanism.Once the futures transaction is reached, the two parties are related to liquidation.The liquidation office is both a buyer of all futures contracts and sellers of all futures contracts.
Prior to the American Civil War , in the absence of central banks, structures such as liquidation institutes were generated in large cities such as New York.These institutions are jointly established by many banks, which integrates the resources of a single member to provide deposit guarantees and cash borrowings for the good membership bank when necessary.The liquidation house appropriately reduces the probability of regional panic into a systemic panic.
Classification of liquidation
Some liquidations are an important department of the exchange (such as the Chicago Commercial Exchange CME and the New York Commercial Exchange Nymex).Institutions such as institutions and other aspects of the exchange (such as Chicago Futures Exchange CBOT ).
Most of the liquidations are independent institutions, but there are also several different exchanges that use a clearing institution , such as the International Commodity Institute (ICCH) is responsible for liquidating most British futures exchanges , The market liquidation company (The Intermartet Clearing Corp) liquidates for the New York Futures Exchange (NYFE) and Philadelphia Exchange (PBOT).
The nature of the liquidation house
Like an exchange, the liquidation is usually a non -profit member organization.Members of the liquidation institute are usually members who are attached to the exchange . In addition to the general membership seats with exchanges, they also need to be stricter than general members' financial indicators.Therefore, the members of the Futures Exchange are divided into liquidation members and non -liquidation members. Non -liquidated members must clear the liquidation members and pay a certain commission fee.my country ’s futures transactions are all organizations and supervision of futures settlement . The settlement department is set up under the exchange as an agency that undertakes the duties of futures settlement.One of the trend of the global securities market and futures market is the increasing consolidation case between exchanges and liquidation institutions .
