Noncleared

Noncleared is an adjective used to describe something that has not been cleared, released, or approved by a competent authority. The precise meaning depends on context, and noncleared items can refer to people, shipments, documents, or financial instruments that have not completed an official clearance process.

In government and national security, a person or facility may be described as noncleared if they have not been granted a security clearance to access sensitive information or restricted areas. Clearance levels typically include confidential, secret, and top secret, and obtaining clearance involves background investigations and adjudication. Noncleared personnel are generally restricted from handling classified information and from access to secure facilities or programs. Some roles require an active clearance, while others permit limited access based on need-to-know.

In finance, noncleared derivatives refer to transactions that are not cleared through a central counterparty. They remain bilateral between counterparties and are subject to regulatory risk-mitigation requirements such as margin, collateral, and ongoing reporting. The distinction between noncleared and cleared derivatives reflects regulatory goals to reduce systemic risk by moving standardized contracts to clearinghouses. Since the early 2010s, regimes under laws like the Dodd-Frank Act and EMIR have expanded clearing obligations for eligible contracts, but many trades remain noncleared due to customization, liquidity, or cost. Firms often rely on bilateral risk controls, reporting, and margin arrangements to mitigate exposure.

In logistics and customs, noncleared shipments are those not yet released by border authorities, potentially delaying delivery and complicating supply chains. Overall, the term is highly context-dependent and requires domain-specific clarification.