Central counterparty clearing house (CCP)

Central counterparty clearing house (CCP) is an organization that exists in various countries that helps facilitate trading done in derivatives and equities markets.   These clearing houses are often operated by the major banks in the country.   CCPs benefit both parties in a transaction because they bear most of the credit risk.   If two individuals deal with one another, the buyer bears the credit risk of the seller, and vice versa.   There are two main processes that are carried out by CCPs: clearing and settlement of market transactions.   -       Clearing relates to identifying the obligations of both parties on either side of a transaction.   -       Settlement occurs when the final transfer of securities and funds occur.
In Europe:
		European Association of CCP Clearing Houses (EACH) represents the interests of CCPs in Europe since 1992. EACH currently has 18 members from 14 different European countries. EACH works with public authorities and industry stakeholders in order to:  ·         Offer the consolidated opinion of our membership in regulatory discussions and consultations ·         Help member CCPs to agree appropriate standards and guidelines for the industry

In Netherlands:
Holland Clearing House (HCH) is a central counterparty for derivatives. They deliver CCP Services for the derivatives Multilateral Trading Facility (MTF), TOM MTF.   HCH is regulated and supervised in the Netherlands by Netherlands Authority for the Financial Markets (AFM) and De Nederlandsche Bank (the Dutch Central Bank; DNB).
As of December 2014, Intercontinental Exchange (ICE Clear Europe), a leading global network of exchanges and clearinghouses, has completed the previously announced acquisition of a majority stake in Holland Clearing House (HCH).