The Clearing Corporation

In 1925, The Clearing Corporation ("CCorp"), then named The Board of Trade Clearing Corporation (BOTCC), became the first independent clearinghouse for futures markets in the United States. Today, the original mandate for CCorp remains intact - to ensure the financial integrity of the futures and options contracts traded on the markets for which it clears. Throughout its history, CCorp has proven itself to be a clearinghouse dedicated to integrity and innovation with both its members and other institutions in the financial marketplace. The Clearing Corporation continuously evolved to meet the needs of the ever-changing derivatives market. It has been the industry innovator while continuing its role as guarantor of exchange-traded futures and options. CCorp takes every submitted trade and continuously matches, throughout the day, the clearing participant buyer with the clearing participant seller. Upon acceptance of a matched trade, The Clearing Corporation is substituted as the counterparty to each clearing participant counterparty to the trade (i.e., CCorp acts as the buyer to every clearing participant seller and the seller to every clearing participant buyer). In this way, The Clearing Corporation guarantees performance of all trades it accepts, in accordance with its Bylaws, rules, policies and procedures. Since CCorp's opening in 1925, no customer has lost money as a result of a default by a clearing participant to The Clearing Corporation. This demonstrates The Clearing Corporation's important role of ensuring the integrity of the marketplace.