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Clearing and settlement demystified


Abstract: This article explains how clearing and settlement systems support a sound financial system. In particular, the article analyzes the role of CCPs (central counterparties) in managing risk in the securities and derivatives markets and some of the relevant public policy issues.

Keywords: Clearinghouses (Banking);

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Provider: Federal Reserve Bank of Chicago

Part of Series: Chicago Fed Letter

Publication Date: 2005

Issue: Jan

Order Number: 210-