Central Clearing

Refreshed June 2025 | CPD time: 45 Minutes

Clearing is the preparation of a transaction for settlement which may involve the matching of the transaction details between the parties to the transaction. A central counterparty is an organisation that exists to support trading performed in financial instruments. It acts as a central point through which trading is channelled. This module explores the background of central clearing, the risks that central counterparties mitigate, recent events and legislation, and the Target 2 Securities development.