30 years: Capital markets & investment banking
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.
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.
1 min 53 secs
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
Understand the significance of CCPs in the derivatives market
Outline examples of major CCPs
16:07