Central counterparties: what are they, why do they matter and how does the Bank supervise them?

Quarterly Bulletin 2013 Q2
Published on 13 June 2013

By Amandeep Rehlon of the Bank’s Market Infrastructure Division and Dan Nixon of the Bank’s Media and Publications Division.

The Government introduced major changes to the system of financial regulation in the United Kingdom in April 2013, including creating the Financial Policy Committee and transferring significant new supervisory responsibilities to the Bank.  As part of this, the Bank is now responsible for the supervision of central counterparties, or CCPs.  This article explains what CCPs are, setting out their importance for the financial system — including the benefits they bring and some of the risks they could present if not properly managed.  It also summarises the Bank’s approach to supervising CCPs and describes some of the key priorities the Bank will be pursuing.

PDF Central counterparties: what are they, why do they matter and how does the Bank supervise them? 

What are central counterparties? - Quarterly Bulletin article

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