Head of clearing house freezes options (7)
I believe the answer is:
choices
'options' is the definition.
('choice' can be a synonym of 'option')
'head of clearing house freezes' is the wordplay.
'head of' suggests taking the first letters.
'house' becomes 'ho' (abbreviation for house).
'freezes' becomes 'ices' (ices over).
The initial letter of 'clearing' is 'c'.
'c'+'ho'+'ices'='CHOICES'
(Other definitions for choices that I've seen before include "Options, alternatives 97)" , "Selections" .)