Central counterparty

From ACT Wiki
Revision as of 10:50, 16 February 2022 by imported>Doug Williamson (Add link.)
Jump to navigationJump to search

(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 links

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

FCA agrees transitional arrangements for ICE Futures Europe and the LME