The financial organizations, often functioning under major banks, established with the aim to make trading easy in derivatives and equities and guaranteeing efficiency and stability in financial markets are called Central counterparty clearing houses (CCPs).
In the intermediary transactions, there are two main functions of CCP

• Clearing

• Settlement

What is clearing?

The process in which CCP becomes the counterparty to the buyer and the seller is called clearing.
The CCP defines what is required from each party in a transaction to reduce counterparty credit risk and to guarantee the settlement of the transaction, even if one of the parties defaults.
The CCP specifies the requirement from each party to the transaction for the reduction of the counterparty credit risk and ensures the settlement of the transaction, even if one of the parties is in default.

What is settlement?

In the settlement process, the CCP oversees the correct and timely transfer of securities and/or cash between the parties to complete the transaction.
The CCP directs the accurate and on tome transfer of securities and / or cash between the parties to complete the transaction in the settlement process.
After a transaction between two counterparts, it is transferred to CCP.
The CCP then accepts the risk of the counterparty to transact for both counterparts.
Risk assessment, clearing, settlement, and general market oversight are the key responsibilities of CCP.

A

Abandoned Baby | Account Statement Report | Account Value | Accumulation Area | Accumulative Swing Index ASI | Address | ADDY | ADP National Employment Report | Advance Or Decline Index | Afghanistan Afghanis | Agency Model | Aggressor | Alan Bollard | Alan Greenspan | Albania Leke | Algerian Algeria Dinars | Alligator | Altcoin | Analysts | Andrews Pitchfork | Angela Merkel | Angola Kwanza | Anti Money Laundering AML | ANZ Commodity Price Index | Application Programming Interface API | Appreciation | Arbitrage | Argentina Pesos | Armenian Drams | Aroon Oscillator | Aroon Up And Down | Aruban Guilder | Ascending Channel | Ascending Trend Line | Ascending Triangle | ASIC Mining | Asset | Asset Purchase Programme APP | Asset Purchases | Asymmetric Encryption | Asymmetric Slippage

B

Bag | Bag Holder | Bahmas Dollars | Bahrain Dinars | Bail In | Bail Out | Balance Of Trade | Baltic Dry Index | Bangladesh Taka | Bank Levy | Bank Of Canada BOC | Bank Of England BOE | Bank Of International Settlement BIS | Bank Of Japan BoJ | Bank Run | Bank Run | Banking Institutions | Bar Chart | Barbados Dollars | Base Currency | Base Rate | Basing | Basing Point | Bear | Bear Flag | Bear Market | Bear Trap | Bearish | Binary Options | Bitcoin Cash | Bitcoin Maximalist | Bitcoin Or BTC | Block | Block Explorer | Block Header | Block Height | Block Reward | Blockchain | Blue Chip | Bolivia Bolivianos | Bollinger Bands | Bond | Bond Auction | Bond Yeild | Book | Boris Schlossberg | Botswana Pulas | Brazilian Brazil Real | Breakdown | Breakeven | Breakout | Brent Crude | Bretton Woods Agreement Of 1944 | BRIC | Broadening Formation | Broker | BTD | BTFD | Bucket Shop | Bulgarian Leva | Bull | Bull Flag | Bull Market | Bull Trap | Bullish | Bullish Engulfing Pattern | Bundesbank | Burundi Francs | Business Inventories | Buy Side | Buying Pressure

C

Cable | Camarilla Pivot Points | Cambist | Cambodian Riels | Canadian Dollar | Cape Verde Escudos | Carbon Credits | Cardano ADA | Carry Trade | Cash Market | Catalyst | Cayman Islands Dollars | Cboe Eurocurrency Volatility Index | Central Bank | Central Bank Digital Currency | Central Bank Intervention | Central Counterparty Clearing Houses CCPs | Central Limit Order Book Or CLOB | Chaikin Oscillator | Chart Pattern | Chartist | Chicago PMI | Chilean Peso | Chinese Renminbi | Chinese Yuan | Christine Lagarde | Circulating Supply | Cleared Funds | Clearing | Clearing Price | Client | Closed Position | Cloud Mining | Coin Age | Cold Storage | Collateral | Colombian Pesos | Comdoll | Commercial Corporations | Commission | Commitments Of Traders Report Or COT | Commodity | Commodity Channel Index Or CCI | Commodity Futures Trading Commission CFTC | Commodity Research Bureau Index | Commodity Trading Advisor CTA | Communaute Financiere Africaine Francs | Comoros Francs | Completeness | Compound COPM | Comptoirs Francais Du Pacifique Francs | Conference Board Consumer Confidence Index CCI | Confirmation | Confluence | Congo Congolese Francs | Consensus Algorithm | Consolidation | Consumer Price Index CPI

E

Economic Indicators