Central bank and Central counterparty: Difference between pages

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(CB).
(CCP).  


A bank which acts as the bank for a government and the other banks in a country or economic area.  
A financial institution that acts as an intermediary between market participants including corporate treasuries.


Central banks are sometimes known as 'reserve' banks.
The CCP must be duly recognised by the regulator ('Competent Authority') in its jurisdiction.




The central bank in the UK is the Bank of England.  
UK central counterparties recognised by the Bank of England include:
*CME Clearing Europe Limited
*LCH.Clearnet Limited
*LME Clear Limited


In the euro area (informally the Eurozone or [[Euro zone]]), it is the European Central Bank.


In the United States, it is the [[Federal Reserve System]].
Most central counterparties are clearing houses.


In Australia, it is the Reserve Bank of Australia.
Also sometimes known as 'central clearing parties'.




== See also ==
* [[Bank of England]]
* [[Bank for International Settlements]]
* [[Bank supervision]]
* [[Banque de France]]
* [[Bundesbank]]
* [[CBE]]
* [[CBN]]
* [[Central bank digital currency]]  (CBDC)
* [[Central bank independence]]
* [[Central bank money]]
* [[Central Bank of the Republic of China]]
* [[Central bank public goods]]
* [[Central bank reporting]]
* [[Central bank reserves]]
* [[De Nederlandsche Bank]]
* [[Digital public money]]
* [[Direct participant in an IFTS]]
* [[euro zone]]
* [[European Central Bank]]  (ECB)
* [[Eurosystem]]
* [[Federal Reserve Bank]]
* [[Federal Reserve System]]
* [[Hong Kong Monetary Authority]]
* [[Institute of International Finance]]
* [[Lender of last resort]]
* [[Market maker of last resort]]
* [[Monetary authority]]
* [[Monetary Authority of Singapore]]
* [[Oversight of payment systems]]
* [[PBOC]]
* [[Quantitative easing ]]
* [[RBI]]
* [[Reserve Bank of Australia]]  (RBA)
* [[Reserves]]
* [[Reserves account]]
* [[Reserve currency]]
* [[Riksbank]]
* [[Swiss National Bank]]
* [[World Bank]]


[[Category:Long_term_funding]]
<span style="color:#4B0082">'''''Brexit, central counterparties, stability risks and costs'''''</span>
 
:"... If we turn to central counterparties (CCPs), if the UK leaves the EU without mitigating action on both sides, EU and UK CCPs could find they are in breach of regulation by providing clearing services in the other’s jurisdiction.
 
:This would apply to maintaining existing positions as well as taking on new positions. This would require abrupt close-out of positions, with attendant financial stability risks and costs to real economies.
 
:I would add that this risk is more acute for EU users because of the volume of activity conducted in UK CCPs."
 
:''Andrew Bailey, chief executive, Financial Conduct Authority, February 2018.''
 
 
==See also==
* [[Brexit]]
* [[Clearing house]]
* [[Competent Authority]]
* [[EMIR]]
* [[Financial Conduct Authority]]
* [[Intercontinental Exchange]]
* [[LME Clear]]
* [[Novation]]
* [[SMF participant]]
* [[Variation Margin Gains Hedging]]
 
 
==External links==
 
[https://www.fca.org.uk/news/speeches/future-city Andrew Bailey, Financial Conduct Authority (FCA), The Future of the City]
 
[https://www.fca.org.uk/news/statements/statement-transitional-arrangements-trading-venues-under-mifir-article-542 FCA agrees transitional arrangements for ICE Futures Europe and the LME]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:Treasury_operations]]

Revision as of 22:23, 1 February 2020

(CCP).

A financial institution that acts as an intermediary between market participants including corporate treasuries.

The CCP must be duly recognised by the regulator ('Competent Authority') in its jurisdiction.


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'.


Brexit, central counterparties, stability risks and costs

"... If we turn to central counterparties (CCPs), if the UK leaves the EU without mitigating action on both sides, EU and UK CCPs could find they are in breach of regulation by providing clearing services in the other’s jurisdiction.
This would apply to maintaining existing positions as well as taking on new positions. This would require abrupt close-out of positions, with attendant financial stability risks and costs to real economies.
I would add that this risk is more acute for EU users because of the volume of activity conducted in UK CCPs."
Andrew Bailey, chief executive, Financial Conduct Authority, February 2018.


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