Clearing houses play in important role in the financial markets. But what exactly are they and what do they do? Tim Bennett explains.
Пікірлер: 206
@karltorento33589 жыл бұрын
My professor sucks at explaining this. Thank you internet man!
@TheJoygazmic3 жыл бұрын
Thank you, really helped understand what happened with the exchanges stopping buys of gamestop today.
@zolanhlangulela9473 жыл бұрын
I came here to learn about what happened at Robinhood too..
@allenberman87423 жыл бұрын
Same 😂
@jonusjonus92713 жыл бұрын
so basically this system will end in the next decade because its so slow and inefficient. BTC and blockchain technology will be the winner in the whole gamestop debacle.
@kristof4763 жыл бұрын
@@jonusjonus9271 Wrong. Bitcoin uses a way slower verification method/guarantee.
@StpMakinMeChangMyNam2 жыл бұрын
@@jonusjonus9271 Update from the future, the major clearing houses and service companies are looking into adopting blockchain technology and continuing their oligopolistic hold on clearing services in finance. They'll likely be successful too because the industry is so heavily regulated and benefits so much from economies of scale that even at the snail's pace they are innovating at, they are not likely to be outcompeted.
@felixf43783 жыл бұрын
Whos is here trying to understand why the brokers halted buying today?
@AutoroTink3 жыл бұрын
Truth! No emotion...just a lesson! Wonderful!
@jonusjonus92713 жыл бұрын
@@AutoroTink i'm on the fence here. I mean this all does make sense why they would halt trading, but man is it suspicious. One thing is for sure, waiting 3 days to transactions to clear is wayyy to long in this day and age. We need to get rid of this.
@tahmeedomar66633 жыл бұрын
same with me.... and also to spread the message to HOLD THE LINE :D
@w1ntersea3 жыл бұрын
@@jonusjonus9271 You literally just got explained why they halted trading and you're still talking about it being suspicious? You need to watch the lesson again and take notes.
@christopherjohnson69703 жыл бұрын
@@tahmeedomar6663 what do you mean? You want us to hold.GME and.not sell?
@derrickcheong80604 жыл бұрын
Big thank you for not putting ads and interrupting our train of thoughts with them! I have youtubed almost 20 finance questions in my own homework, and you have videos that carried every single one of them. It just became an instinct to use you for every question i have. Thank you Sir, really :')
@sayma893 жыл бұрын
Excellent excellent excellent. I was searching long on the connection between clearing houses and margin. This is just it. Clear and concise.
@MilitaryBot8 жыл бұрын
its so easy to understand. Watching your videos from last 3 months enjoyed a lot
@bigfriki9 жыл бұрын
This channel is a true lifesaver.
@damaster72011 жыл бұрын
This guy explains things well. Thanks, Tim.
@goodstang12 жыл бұрын
Tim - this is excellent. Keep up the good work!
@OML500012 жыл бұрын
These are great. Thank you for doing these videos - keep them coming!
@akshay198111 жыл бұрын
Thank You Money Week....you really make life easy...keep going
@GiteshBajaj9 жыл бұрын
thanks.... Explained very clearly.... Also cleared misconceptions Excellent
@pallavipant73066 жыл бұрын
Thank you for the video. very informational and explained the subject very nicely to understand.
@pacman0825 Жыл бұрын
Excellent video, i'm adding a bunch of stock to my current holdings for the long run, do you think these stocks are long term worthy, i've set aside $250k to begin and i'd love to avoid as many mistakes as i can
@stellaalien2105 Жыл бұрын
if your trying to avoid mistakes then do yourself a favour and try to get a professional broker
@sephir0th776 Жыл бұрын
have you used one before and what result were you able to achieve? i'm still in touch with a good broker and its panning out great so far, just this year alone i've made atleast $350k
@stellaalien2105 Жыл бұрын
Mrs Juan Stacy is my personal professional broker, i came in contact with her since 2017 in usa and since then we have been working together
@stellaalien2105 Жыл бұрын
you can reach out to her on telegram....
@stellaalien2105 Жыл бұрын
@investwithfxstacy1 is her user name....
@evilzzzability2 жыл бұрын
This is such a brilliant explanation of how our capital markets work
@maxhogg483911 ай бұрын
Fantastic video ! very well explained, thank you very much I now understand what a clearing house is and what it does.
@suleimanthelondoner11 жыл бұрын
Thinking of getting a subscription to Moneyweek now. Thanks.
@ramprasad12326 жыл бұрын
thank you so much to make us understand about clearing house.
@SuperSidney19898 жыл бұрын
thank you for sharing your financial knowledge :)
@onfire40009 жыл бұрын
Amazing teacher
@binasrinivasan44904 жыл бұрын
Fantastic explanation.. thanks for "clearing" that up
@geewhiz7473 жыл бұрын
I see what you did there
@chrisragkavas61496 жыл бұрын
Excellent and succinct session.
@fahimeousseny85142 жыл бұрын
Great video, well explained thanks !
@DaDemolisher10 ай бұрын
best vid to clarify clearing houses cheers
@fernandapernaash15219 жыл бұрын
Very good! Thank you for that!
@KennethBenedict148 жыл бұрын
O
@jop069312 жыл бұрын
wow! excelent video!! thank you very much!!
@robhingston5 жыл бұрын
You made it so clear, No pun intended
@malateshnadiger43557 жыл бұрын
Very nice presentation ....
@navssall7 жыл бұрын
Fantastic!
@peschebichsu3 жыл бұрын
Very well explained!
@jws18028 жыл бұрын
Thank you.
@fukd12mpt11 жыл бұрын
Great video guys! Few retail investors are familiar with the inner-workings of the buying/selling process. A shame the comments are hijacked by marketeers though lol :/
@michelUSAvideos3 жыл бұрын
These videos are too good to be true
@bhavprajapati11 ай бұрын
Amazing explanation
@nataliah44785 жыл бұрын
thanks amazing presentation
@samuelspencer50473 жыл бұрын
I am here because I want to understand what a clearing house is and because I like this channel
@bilalhassansayed81782 жыл бұрын
Thank you Sir.
@lukasmajercak493810 жыл бұрын
thank you!
@yvettewalker72248 жыл бұрын
I have an elementary question. Exactly how is a check cleared? Example: a check is handed to a person/business, that person/business cashes the check at their financial institution, is handed cash & days later the check bounces. What journey did that check take from the time it was introduced to the bank to the time it bounced?
@IefNaij3 жыл бұрын
Came here to understand why Robinhood reduced trade, very nice explanation!
@rhythmandacoustics3 жыл бұрын
They were forced by their brokers, e.g. Wolverine Securities, Citadel Securities, and so on to pay up.
@thegoonist10 жыл бұрын
dude u r amazing cheers
@johnny6ryefield12 жыл бұрын
I have yet to found any vid on youtube that explains financials better than you series mate
@darkrayc3 жыл бұрын
I had a question till 10:53 - "Can clearing houses refuse to clear a trade? What are the alternatives they take to refusing the trade?" What I got out of it was: They try not to by raising the margin higher up. So if they have to refuse the clearing, do they have to pay back to their members an SLA fee? Or does it depend on the legal bindings made between the clearing houses and the members?
@BruteSia9 жыл бұрын
Omg the caption is soooo funny!!! hahahahah!!! Btw nice explanation 10/10 !!!
@myareed52757 жыл бұрын
CoconutSquid 1
@olliemoore117 жыл бұрын
love your vids.
@PietroSperonidiFenizio3 жыл бұрын
So, is this what happened with GME? The Clearing House started asking for a higher margin?
@ROCKSTAGT6 жыл бұрын
Great video sir. I have a question; What is the role of CH in FX trades?
@FirstClass1023 жыл бұрын
Is there a video on explaining the margin requirements?
@5410997 жыл бұрын
I'm slightly confused. Clearing Houses becomes both buyer and seller while awaiting the settlement phase, but how does the CH take on these legal rights without having to wait for its own settlement phase?
@Alice-gl6um5 жыл бұрын
omg than you sir1!!!!!! oh gosh it helped me a lot, sir
@mineshize10 жыл бұрын
thx sir
@SC-do8mo3 жыл бұрын
Clearance houses have a real risk of being bag holders when a stock moons, is what I understood from this.
@ketanmalik4067 жыл бұрын
Thanks
@marydesireeatup75723 жыл бұрын
thank youuuu!!
@jackperry62694 жыл бұрын
Are there any videos on risk quantification and risk parameters?
@NMLP923 жыл бұрын
majorly relevant today
@StuffOffYouStuff3 жыл бұрын
Haha I've been watching Tim's vids a while and now. I typed in clearing house and his was the first top up. WOW THERE'S LOADS OF VIEWS!! He will be very happy with this. Check his other vids out he's good
@abhishekramkumar88756 жыл бұрын
Hey Tim what is the difference between a broker and a custodian bank ?
@Ease_29 Жыл бұрын
I came here after 11 years after uploading.
@jennyli77495 жыл бұрын
Does that mean a bank/institution is not a clearing house it’s less safe to trade with them? For eg I deposited a large amount into an isa of a not so well known bank and it took 4 days for money to be deposited....during that time I was sweating bullets because I had no idea where the money was. In the end all was well and deposit went through but their explanation of why it took so long was that it was not a clearing house/bank
@atulnemlekar95395 жыл бұрын
Thanks a lot for such an insightful video 👍
@derektaylor39565 жыл бұрын
How do I find you margin video? Could you maybe make a video explaining the recent shakeup created by Einar Aas?
@silverhawk9233 жыл бұрын
What happens when the clearing house can’t cover the sale price?
@asmitashah46397 жыл бұрын
What if client defaults on a derivative contract and the clearing member has already paid the mtm call to ccp, would ccp pay back the money to clearing member? Asking cause you mention that guarantees exist to client B by ccp, so does this mean that ccp uses clearing member to honour its guarantees?
@templargin9 жыл бұрын
If the clearing house refunds the money fully, how does it make profit?
@yashdave916 жыл бұрын
Adil T good question. Not everyone defaults. But everyone pays some free to clearing house for every trade.(like insurance companies, not everyone dies but everyone pays premium) And there e margins maintained by clearing House. So technically clearing house takes guarantee for every trade but never looses money 💰
@strawberryfeeder11 жыл бұрын
Hi Tim, your video is great! but I'm a bit confused at the end. since the margin is essentially a secure that's being put upfront to ensure both parties perform accordingly to the contract, both parties should be prepared to pay rather than default, thus rising the margin by 10% shouldn't be an obstacle to their transaction since these money are expected to be paid in 2-3 days, is that right?
@VirjilioPachecoreyes11 ай бұрын
KLakkm vWkklQC
@delreenzoremsiami61547 жыл бұрын
Can you please do a video on the how futures market serve as the price discovery market?
@Iamfatemas5 ай бұрын
WOOW THANKS
@drvladanmilosevic90288 жыл бұрын
Thank you, great explanation, but I have a hard time following the accent, thus don't understand some points since I am not English mother tongue. I would appreciate the subtitles if possible:). Thank you
@DMBtomp3 жыл бұрын
lol that's the clearest english accent by an english person you'll ever hear. he's RP to the core
@PietroSperonidiFenizio3 жыл бұрын
@@DMBtomp yes, but if you check the automatic subtitles there are times where the AI was unable to understand either. While there are people with a much worse accent, very american accent, but that the subtitle is better able to understand.
@conormcgregor.73333 жыл бұрын
John D. Rockefeller could have only dreamed of such a scam. We need deserialized clearing and settlement, AKA blockchain clearing and settlement.
@vinodep72093 жыл бұрын
We like the stonk
@XForbide3 жыл бұрын
In what situation would the seller not be able to deliver the shares or the buyer not be able to deliver the cash, that would necessitate the DTC? Thanks
@rhythmandacoustics3 жыл бұрын
If the are heavily leveraged, in this case you might be thinking of the hedge funds that tried to short but couldn't pay the borrowed stock. This is called liquidity or the lack of liquidity in the short seller's case.
@millenialmusings84516 ай бұрын
Old KZfaq videos were so much better! No flashy thumbnails, no clickbait titles, no sponsor plugs, and no pushy "like and subscribe". Simple and straight to the point.
@Perfectsound8812 жыл бұрын
EXCELLLL-ENT
@alexsemchenkov5740 Жыл бұрын
Great explanation but unfortunately the sound quality is quite poor
@ap-lt2oj3 жыл бұрын
question is..why is this still such a long process in 2021
@andyjohnson97143 жыл бұрын
its a question of trust. and it derives from prehistoric times. clearing houses, central banks etc are "trust" providers. you might not trust the seller, but you trust the bank which will handle your transaction.
@egante3 жыл бұрын
Blockchain will move it to real time settlements Just needs more proving out in the public domain
@sha70wequities9 ай бұрын
❤
@raytrack35523 жыл бұрын
So they obviously don't uphold their obligations since there are millions of synthetic shares of AMC, which has created millions upon millions of Failure-To-Delivers (FTDs)
@gauravshukla45638 жыл бұрын
explains in lot complicated way
@marc_12853 жыл бұрын
So basically Robinhood did not have the cash to provide the margin required by the Clearing House right? Why did the CEO say that they did not have a liquidity issue then? That dude was lying in my opinion (even if the Clearing House increased their margin requirements).
@avinashgupta51733 жыл бұрын
Indian are great in business , money& stock market
@busimo3 жыл бұрын
System is inefficient, not entirely robinhood's fault as we are aware of more information.
@jonusjonus92713 жыл бұрын
this system will end in the next decade because its so slow and inefficient. BTC and blockchain technology will end up being the real winner in the whole gamestop debacle.
@busimo3 жыл бұрын
@@jonusjonus9271 yeah, but I think the stock market will catch up in 15 years if not 10.
@rockysarker12 жыл бұрын
Sup, have you seen this method called the Intellitus Cash System? (look for it on google). My dad says it makes people plenty of profits.
@christopherjohnson69703 жыл бұрын
Aged well
@andrew76933 жыл бұрын
“That’s why you pay your broker 9.99/trade” omg, could you imagine. That’s insane.
@rhythmandacoustics3 жыл бұрын
Lol Robinhood is scamming so much people. There is no such thing as a free lunch. If you are not paying for the product you are the product. Robin hood takes huge cut on the spread of your trade.
@andrew76933 жыл бұрын
@@rhythmandacoustics I dont use Robinhood. But still, crazy.
@exby3 жыл бұрын
hold GME
@charlesagnew38013 жыл бұрын
Holding AMC
@eddiemontgomery70885 жыл бұрын
Can one clear student loans?
@alisonlazarus40103 жыл бұрын
Add Scott_hack1 on instagram he's the best so far..
@alisonlazarus40103 жыл бұрын
Add Scott_hack1 on instagram he's the best so far..
@alisonlazarus40103 жыл бұрын
Add Scott_hack1 on instagram he's the best so far..
@clycaon90096 жыл бұрын
So whats with all the Clearing Houses that can use debts owed to the Banks by others against their own debts to clear out their Debt?
@clycaon90096 жыл бұрын
Good thing I'm Clearing their houses and dropping their shit off into a Volcano ;)
@clycaon90096 жыл бұрын
Had to make another Offering to keep Yellowstone from going off
@clycaon90096 жыл бұрын
Putting Pyramids and Tombs where the houses that were thrown into a Volcano were, sometimes they're there, sometimes they arent.
@clycaon90096 жыл бұрын
Be careful of the Stories spread across the Walls, you'll go into the story, live it, and come out with a new purpose. The whole place should be lit up with light to easily read, but you may just move to another period and find yourself back at the end of the story.
@clycaon90096 жыл бұрын
The Clearing Houses are assholes for saying they gave my family this house btw, We helped build it.
@KingsDaughter. Жыл бұрын
With monetary going digital there will be no need for ccp anymore
@omprangyabharatisahoo51374 жыл бұрын
Can any one say me what is clearing house. .???
@omprangyabharatisahoo51374 жыл бұрын
Plz answer me
@omprangyabharatisahoo51374 жыл бұрын
It's my exam question
@ericmass113 жыл бұрын
where's the risk if you can quickly verify the buyer has the money and the seller has the sell... this model seems outdated for 2021
@Toxic-th4si3 жыл бұрын
To the moon 🚀🚀🚀🚀
@tiffanypalla252211 жыл бұрын
Low risk penny stocks are the way to go now wellsbee.com offers stocks picks and details on how they work for beginners and experts alike.
@chadfoster28584 жыл бұрын
So the Clearinghouse guarantees the transaction for a fee cool How do you own a Clearinghouse because I would love to own a Clearinghouse It's a completely unnecessary part of a digital transaction and still makes a percentage of each transaction, not only that but it has for a 3day window both parties money's worth of transaction . Which boosts it's (companies)asset or trade rating for 3 days. You can't lose ever owning one of these!!!! What a scam owning one of these should be illegal The person's or groups that own these own damn near everything folks this isn't right See after they take your money they reinvest their money back into taking your money You are paying them to take your 💰
@sundingouesh79554 жыл бұрын
Financing stops moving, national infrastructure can slow down or stop. Ask Google about expanding into a different direction. Take KZfaq out of the equation? Keep separate?
@ytchannel8653 Жыл бұрын
ICT
@mohdnasir5140 Жыл бұрын
Page 208 clean-shaven = adj (of men) having the facial hair shaved off.
@Brigadorski3 жыл бұрын
Is blockchain technology the answer to removing all of these middlemen?
@Ellipses133 жыл бұрын
Please invest in a proper microphone. The camera mic is insufficient and consequently the audio is poor.
@owenzaynesdad79207 жыл бұрын
love your video. just a bit dry... need some animation or jokes.