Central counterparty

(CCP).

A central counterparty is an institution, acting in one or more securities or cash markets, that is interposed between two trading parties.

The central counterparty guarantees the performance of the underlying transaction by acting as a matching seller to the buyer and a matching buyer to the seller.

UK central counterparties recognised by the Bank of England include:

• CME Clearing Europe Limited
• LCH.Clearnet Limited
• LME Clear Limited

Most central counterparties are clearing houses.

Also sometimes known as 'central clearing parties'.

See also

• Brexit
• Clearing house
• Competent Authority
• EMIR
• Financial Conduct Authority
• Intercontinental Exchange
• LME Clear
• Novation
• SMF participant
• Variation Margin Gains Hedging

External links

Andrew Bailey, Financial Conduct Authority (FCA), The Future of the City

FCA agrees transitional arrangements for ICE Futures Europe and the LME