Definitions for "Central counterparty"
A financial institution that acts as an intermediary between security market participants.... more on: Central counterparty
On many exchanges, the 'other side' of any trade. The intent is to eliminate the risk of doing business with numerous, perhaps unknown parties (counterparty risk, q.v.) by inserting a well-capitalized entity to serve as the principle behind any transaction.
a financial utility that stands between buyers and sellers to guarantee that money and securities will change hands, allowing the smooth completion of trades