What is Compensação de Contraparte Central?
In this glossary, Compensação 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 Compensação de Contraparte Central used in finance?
In finance communication, this term appears in contexts such as: "A compensação de contraparte central reduz o risco sistêmico garantindo que as negociações sejam honradas mesmo se uma das partes entrar em default."
Why does Compensação de Contraparte Central matter in finance?
Compensação 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 Compensação de Contraparte Central?
Compensação de Contraparte Central is mainly used by Financial Analysts, Bankers, and Traders.
What category does Compensação de Contraparte Central belong to?
In this glossary, Compensação 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.
