Template:Clearing house: Difference between revisions

Template:Clearing house (view source)

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	A well-capitalised intermediary body that [[clearing\|clears]] and settles transactions executed on [[exchange]]. The [[exchange]] is the place where you ''execute'' the trade; the [[clearing house]] is where you ''settle'' it. Most [[exchange]]s will have an associated [[clearing house]]. So [[initial margin]], DVP and all that — all that happens on the clearing house. [[Exchange]]s don’t themselves call for [[margin]].		A clearing house]] (a.k.a. a [[central clearing counterparty]] or [[CCP]]) well-capitalised intermediary body that [[clearing\|clears]] and settles transactions executed on [[exchange]]. The [[exchange]] is the place where you ''execute'' the trade; the [[clearing house]] is where you ''settle'' it. Most [[exchange]]s will have an associated [[clearing house]]. So [[initial margin]], DVP and all that — all that happens on the clearing house. [[Exchange]]s don’t themselves call for [[margin]].

	A [[clearing house]] is designed to protect the parties to a transaction on an [[exchange]] from the counterparty [[credit risk]] they have to one other.		A [[clearing house]] is designed to protect the parties to a transaction on an [[exchange]] from the counterparty [[credit risk]] they have to one other.