Central Counterparty Clearing House - CCP

Know what they call a Quarter Pounder in Paris? Royale with Cheese.

When it comes to Europe, the blokes across the Atlantic have their own terminology for many things.

Sometimes it’s food, and other times it's advanced processing centers that aim to seamlessly limit counterparty trading risk and process derivatives and equity trades of anonymous parties. The CCP find ways to net offset payments between a variety of counterparties, and it requires collateral to take part in their system (known as a margin deposit).

This organization guarantees the terms of a trade and takes on the risk that one participant doesn’t fulfill its obligations. It meets these obligations by drawing capital from its “guarantee fund.”