Univ.-Prof. Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.A CCP link is a cooperative framework that enables two independent clearing houses to handle eligible transactions across their respective participant networks. It gives a participant access to clearing through its existing CCP rather than requiring direct membership of the other clearing house.
A central securities depository (CSD) operates the infrastructure used to register, safeguard, and transfer securities. It maintains authoritative records of investors' holdings and supports the completion of trades without routinely moving paper certificates. Depending on the market, the underlying instruments may be stored as immobilised documents or represented entirely by electronic entries. A CSD may… read more »
In bond trading, the clean price is the security's quoted value before the settlement adjustment for interest accumulated since the most recent coupon date. Any applicable rebate is also left out, while costs already embedded in the quoted amount remain reflected. The figure is contrasted with the dirty price, which incorporates the accrued interest due… read more »
Clearing is the post-trade process that prepares obligations for completion by verifying trades, calculating what each participant is responsible for, and reducing offsetting amounts where appropriate. In derivatives markets, it also involves routinely revaluing open contracts and updating the collateral or margin needed to support them before settlement occurs.
A clearing fund is a shared financial resource maintained within a central clearing system to manage losses that remain after a member fails and its available collateral has been applied. Contributions from clearing members or other eligible guarantors can be drawn on under the system's default procedures to help complete affected trades and maintain payment… read more »
A clearing house is financial-market infrastructure that helps members determine what they owe one another after trades or payment instructions are submitted. It may offset or net those obligations, establish settlement amounts and timings, and manage the procedures and safeguards needed to complete them. Where it operates as a central counterparty, it interposes itself between… read more »
Under this basis, an entry is posted only once funds or other contractual consideration have actually changed hands. Authorising, arranging, or initiating the transaction does not by itself determine the reporting period.
A central counterparty (CCP) is a clearing institution that becomes the common contractual partner for trades accepted into its system. It replaces direct exposure between the original trading parties with separate obligations between each party and the CCP, while using collateral, netting, and default-management procedures to control the resulting risks.
The bond market enables public and private borrowers to obtain debt financing from investors. A bond typically promises periodic interest payments and repayment of principal at a specified date, while some securities adjust their interest payments over time. The market mainly supports medium- and long-term borrowing and investment.
A book-entry system maintains investors' ownership interests in digital account records rather than issuing paper certificates. When an interest changes hands, the relevant accounts are updated electronically to reflect the new holder, eliminating the need to create or hand over a physical instrument.