central counterparty (CCP)

What is central counterparty (CCP)?

central counterparty (CCP) definition and meaning on Finance terms:
An entity that interposes itself, in one or more markets, between the counterparties to the contracts traded, becoming the buyer to every seller and the seller to every buyer and thereby guaranteeing the performance of open contracts. <


reference: https://www.ecb.europa.eu/home/glossary/html/index.en.html