Univ.-Prof. Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.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 »
Clearing is the process of reconciling and determining the amounts that participants in a financial transaction must deliver or receive before those amounts are finally paid or transferred. It may involve aggregating transactions, offsetting reciprocal claims, and using an intermediary or other organised arrangement. Settlement is the later stage in which the resulting cash or… read more »
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.