Also known as Clearing Corporation, the Board of Trade Clearing Corporation acts as a guarantor for all the trades cleared and settles all the trades made at the Chicago Board of Trading. It also ensures that at the end of the day, all the losses are collected and gains are credited.
Points to Remember:
The corporation ensures that all the trades take place in a smooth manner. In other words, they become the buyer to every seller and seller to every buyer.
It is an independent organization, efficiently handling complex transactions like futures contracts.