Glossary
Backloading
The process of clearing old legacy trades that are not subject to mandatory clearing. This may be done so as to preserve netting benefits with newer cleared trades.
Basel III
The third regulatory standard on bank capital requirements with implementation from 2013. A significant amount of Basel III relates to additional capital requirements for the counterparty risk of OTC derivatives.
BCBS
Basel Committee on Banking Supervision.
Bilateral netting
Netting between two counterparties.
BIS
Bank for International Settlements.
CBOT
Chicago Board of Trade.
CCP
Central Counterparty (an entity that interposes itself between counterparties to contracts traded in financial markets as the buyer to every seller and seller to every buyer).
CCP12
A global not-for-profit organisation with the aim of developing clearing and risk management practices.
CCR
Counterparty Credit Risk.
CDO
Collateralised Debt Obligation.
CDPC
Credit Derivative Product Company.
CDS
Credit default swap (a credit derivative contract covering the risk that a specified credit(s) will default).
CEM
Current exposure method.
CFTC
Commodity and Futures Trading Commission.
Clearing member
A member of a CCP (sometimes referred to as just a member).
Client clearing
The process of clearing via a clearing member by a party not a member of the CCP.
Close out
The process of terminating trades with a defaulted counterparty.
Close out netting
The settlement of more than one obligation through a single net payment ...
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