Download This PaperCounterparty Substitution in Central Counterparty (CCP) Systems
26.3 Banking & Finance Law Review 517, 2010
24 Pages Posted: 19 Nov 2010 Last revised: 22 May 2016
Date Written: October 1, 2010
Abstract
This article describes the legal aspects involved in the counterparty substitution mechanism between a Central Counterparty (CCP) system and the clearing members through the contractual processes of multilateral novation netting and open offer. The substitution process is necessary in order to provide legal certainty for the system participants and to ensure them that the CCP guarantees all transactions as principal.
Keywords: CCP systems, open offer, multilateral novation netting, counterparty substitution, mutuality requirement
Suggested Citation: Suggested Citation
Chamorro-Courtland, Christian, Counterparty Substitution in Central Counterparty (CCP) Systems (October 1, 2010). 26.3 Banking & Finance Law Review 517, 2010, Available at SSRN: https://ssrn.com/abstract=1710485
Do you have a job opening that you would like to promote on SSRN?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.