What is a Discount House?

In the financial world, a discount house is a firm that specializes in trading, discounting, and negotiating bills of exchange or promissory notes. Its transactions are generally performed on a large scale with transactions that also include government bonds and Treasury bills.

Also known as bill brokers, discount houses primarily operated in the United Kingdom, playing a key role in the financial system there until the mid-1990s. By 2000, British discount houses largely ceased to exist as separate financial institutions. They no longer exist as separate financial institutions, though some still remain in India and other nations.1

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