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Banking

Compensación de Contraparte Central

A mechanism whereby a central counterparty (CCP) interposes itself between trading parties in derivatives and securities markets, guaranteeing the terms of a trade and reducing counterparty risk.

Quick answer: A mechanism whereby a central counterparty (CCP) interposes itself between trading parties in derivatives and securities markets, guaranteeing the terms of a trade and reducing counterparty risk.

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Quick answer

A mechanism whereby a central counterparty (CCP) interposes itself between trading parties in derivatives and securities markets, guaranteeing the terms of a trade and reducing counterparty risk.

Why it matters

Compensación de Contraparte Central matters because it supports clear communication in Banking contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Editorial context

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Questions and answers

Questions and answers

What is Compensación de Contraparte Central?

In this glossary, Compensación de Contraparte Central refers to: A mechanism whereby a central counterparty (CCP) interposes itself between trading parties in derivatives and securities markets, guaranteeing the terms of a trade and reducing counterparty risk.

How is Compensación de Contraparte Central used in finance?

In finance communication, this term appears in contexts such as: "La compensación de contraparte central reduce el riesgo sistémico al garantizar el cumplimiento de las operaciones incluso si una parte incumple."

Why does Compensación de Contraparte Central matter in finance?

Compensación de Contraparte Central matters because it supports clear communication in Banking contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Who uses Compensación de Contraparte Central?

Compensación de Contraparte Central is mainly used by Financial Analysts, Bankers, and Traders.

What category does Compensación de Contraparte Central belong to?

In this glossary, Compensación de Contraparte Central is grouped under Banking. Related pages in this category explain adjacent procedures, commands and operational concepts.

Where does this definition come from?

This definition is sourced from CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework and published by Protermify Finance as a static finance reference page.

Definition

A mechanism whereby a central counterparty (CCP) interposes itself between trading parties in derivatives and securities markets, guaranteeing the terms of a trade and reducing counterparty risk.

Operational example

Central counterparty clearing reduces systemic risk by ensuring trades are honored even if one party defaults.

Localized term

Compensación de Contraparte Central

Localized example

La compensación de contraparte central reduce el riesgo sistémico al garantizar el cumplimiento de las operaciones incluso si una parte incumple.

Definition language

English reference definition

Source

CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework

Category

Banking

Exam relevance

  • CFA
  • ACCA
  • FRM

Target audience

  • Financial Analysts
  • Bankers
  • Traders

Related terms

Use the related links below to continue through connected finance terminology.

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