Sentence examples for a central counterparty from inspiring English sources
The phrase "a central counterparty" is correct and usable in written English
It is typically used in financial contexts to refer to an entity that acts as an intermediary between buyers and sellers in a transaction, ensuring the trade is completed smoothly. Example: "In order to mitigate risk in the derivatives market, many firms rely on a central counterparty to facilitate their trades."
Indeed, the introduction of a central counterparty has increased trading costs for some of the exchange's smaller members.
To reduce risk to market participants, the contracts should be traded on an exchange or via a central counterparty.
The Derivatives Act passed by the house of representatives in December 2009 would limit banks or brokers to 20% ownership of a central counterparty.
It has put in place a central counterparty, an idea that iX also wants, but the details of which it has not yet agreed.
How the regulators will work together is not explained.Most banks and brokers want a central counterparty for their trades (futures exchanges already have one).
This structure thus gives incentives to executives to underwrite instruments that are profitable in the long term.Kumiko Yoshinari Bethesda, MarylandThere is an argument that CDSs should be traded on exchange, or at least using a central counterparty.
For example, during a period of heightened stress, participants may be willing to provide liquidity to a market if a strong central counterparty is present but not otherwise.
They favour an "hourglass" solution: competition among a number of exchanges and settlement firms, with a single central counterparty, so that users can net off sales and purchases.
The DTCC was not a market-driven solution, but a product of regulators who encouraged a merger of regional securities depositories.The DTCC this month established a European central counterparty (EuroCCP) for Nasdaq Europe.
Hence the enthusiasm of many big investment banks for a market like an "hourglass": trades from different exchanges would be funnelled through a single central counterparty (CCP).
Most Europeans do not expect to see a single central counterparty in Europe, but perhaps two unless regulators impose one.Ask European stock exchanges and clearing houses where the biggest threat to their prosperity lies and it is not, they believe, from each other.
