CCP stands for central counterparty, sometimes also referred to as a central counterparty clearing house. A CCP plays a role in the settlement of securities and derivatives transactions, particularly those carried out on a trading venue. One key characteristic of these transactions is that the obligations are settled at a later time than that at which the actual trade took place. If, in the intervening period, either of the two parties is unable to meet its obligations, this could cause problems for the other party. To prevent this negative spiral, the CCP positions itself between the buyer and seller as soon as the transaction has been executed. The CCP thus becomes the new counterparty of both the buyer and the seller – hence the name ‘central counterparty’. As a consequence, the relationship between the two original trading parties no longer exists.[...]