Clearing Agent Law and Legal Definition

Clearing agent refers to a person or company acting as an intermediary in a securities transaction. It also provides facilities for comparing data with respect to securities transactions. Clearing agent includes a custodian of securities in connection with the central handling of securities. Clearing agents are governed under Securities Exchange Act.

In Stander v. Financial Clearing & Services Corp., 730 F. Supp. 1282 (S.D.N.Y. 1990), it was held that a clearing agent is generally under no fiduciary duty to the owners of securities that pass through its hands.