Bank payment obligation and Central counterparty: Difference between pages

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imported>Doug Williamson
m (Put acronym at beginning of term explanation)
 
imported>Doug Williamson
(Update external links.)
 
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(BPO).
(CCP).  


A bank payment obligation is a payment instrument that automates the payment of trade transactions.  It is an irrevocable undertaking of the importer’s bank to pay a specified amount to the exporter’s bank when it receives notification of a data match from an independent data matching service.
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.


==Other links==
*[http://www.treasurers.org/node/9201 Payment Pledge, The Treasurer, July 2013]


*[http://www.iccwbo.org/About-ICC/Policy-Commissions/Banking/Task-forces/Bank-Payment-Obligation-(BPO)/ International Chamber of Commerce Uniform Rules for Bank payment Obligation (URBPO)]
UK central counterparties recognised by the Bank of England include:
*CME Clearing Europe Limited
*LCH.Clearnet Limited
*LME Clear Limited


[[Category:Payment_and_Clearing_Systems]]
 
Most central counterparties are clearing houses.
 
Also sometimes known as 'central clearing parties'.
 
 
==See also==
* [[Bank of England]]
* [[Brexit]]
* [[Clearance]]
* [[Clearing house]]
* [[Competent Authority]]
* [[EMIR]]
* [[Financial Conduct Authority]]
* [[Intercontinental Exchange]]
* [[LME Clear]]
* [[Novation]]
* [[SMF participant]]
* [[Variation Margin Gains Hedging]]
 
 
==External link==
 
[https://www.bankofengland.co.uk/quarterly-bulletin/2013/q2/central-counterparties-what-are-they-why-do-they-matter-and-how-does-the-bank-supervise-them How the Bank of England supervises central counterparties]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:Treasury_operations]]

Latest revision as of 17:55, 16 February 2022

(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


External link

How the Bank of England supervises central counterparties

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