EU CCPs: EMIR 3 framework on authorisation, prudential risk management, interoperability, third-country recognition, client asset protection, FRANDT, active accounts, and related regimes MiFIR, CRR, DORA, plus recovery and resolution
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What are CCPs and what do they do?
A central counterparty (CCP) is a form of financial institution, often called a clearing house, that enables the clearing of both over-the-counter (OTC) derivatives and exchange-traded derivatives (ETDs). CCPs are recognised as financial market infrastructures (FMIs). A derivative is a financial instrument whose value is set by reference to, and therefore derived from, an underlying asset, index, rate, reference point or risk (known as the underlying asset or simply the underlying). Derivatives are bi-lateral agreements that shift some or all of the risk and reward linked to the underlying from one party to another, without any immediate delivery of the underlying item. The terms of OTC derivatives are negotiated directly between the counterparties, or in certain instances arranged via a broker. OTC derivatives are distinct from derivatives, typically futures or options, that are traded on public exchanges (called exchange-traded derivatives or ETDs). For ETDs, contract terms are defined by the exchanges on which they trade, not by the contracting parties. ETDs are, in general, straightforward and highly standardised, and can be traded by members of the public. OTC derivatives, by contrast, can indeed vary quite widely and, in practice, they range from...
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Web page updated on 26/05/2026
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