A central counterparty clearing house (CCP) is an organisation, usually operated by major banks, that exists to help facilitate derivatives and equities trading. The aim of a CCP is to introduce efficiency and stability into financial markets.
A CCP guarantees the performance of contracts, and steps in if there is a default for cleared products. To cover their risks they collect margin, in particular Initial Margin and Variation Margin, from their clearing members.
Learn other definitions of key margin terminology with our A-Z Margin Terminology page. Additionally, we invite you to explore a wide selection of blogs and ebooks on our insights page. Lastly, learn more about OpenGamma by watching our demo and taking a look at our product and solutions pages.
