A clearinghouse is an essential financial institution that functions to facilitate the exchange, balancing, and settlement of payments or securities transactions, reducing the complexity and risk associated with such transactions.
A leading commodities exchange, specializing in cotton, which has been a subsidiary of the New York Board of Trade (NYBOT) since 1998.
**Seat** is a figurative term that refers to an individual's or firm's membership on a securities or commodities exchange. A seat grants the holder the right to trade on the floor of the exchange and to access various trading privileges. Traditionally, seats are bought and sold at prices determined by supply and demand within the marketplace. The ownership of a seat is often considered prestigious and can be highly valuable due to the privileges and opportunities it confers upon the holder.
