A voluntary association composed of banks, the purpose of which is to effect at one place in a city a daily exchange of checks, drafts, and other evidences of indebtedness held by one member and due from another. An organization within a stock or commodity exchange which acts as a universal go-between or clearinghouse, for the debits and credits of its members with one another. At the close of each day's business all of these transactions are reported to the association, which then becomes the opposite party to the transactions of each member for the purpose of offsetting the same.