What are Central Counterparties (CCPs)?
Central Counterparties, or CCPs, reduce settlement and credit risk and costs by netting transactions between multiple counterparties. Peter explains how and why CCPs perform this function.
Overview
Central Counterparties (CCPs) are an essential entity for derivative trades in certain markets. They are successful in reducing risk, but can constitute a systemic risk under extreme conditions.
Key learning objectives:
Define CCPs and novation
Explain the significance of CCPs in the derivatives market
List examples of major CCPs
Summary
Expert
Peter Eisenhardt
Peter has over 30 years experience working in banking. He has held several senior positions in international investment banks. Peter is now the Secretary General of the International Council of Securities Associations
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