A Central Counterparty is generally an entity that complements the services of clearing and settlement operations in a market in financial assets (Stocks, derivatives, bonds, etc

A Central Counterparty is an entity of the financial infrastructure that complements the services of clearing and settlement for the operations in a market of financial assets (stocks, derivatives, bonds, etc.), its main function is to become the debtor and the creditor for the trades originally agreed by the brokerage houses in the market. In other words, it becomes responsible for the delivery of the securities to the buyer and to pay the cash to the seller.
 
In Mexico the Central Counterparty (CCV) contributes to create a more secured financial environment in which systemic and counterparty risks are mitigated. CCV operates according to the main trends and best practices in the industry on risk management and clearing and settlement; contributing therefore to make possible to the participation of the local infrastructure into other markets.

The strength of the CCV is determined by the soundness of their guarantee funds for covering the risks the Central Counterparty assumes. The following chart compares the level of risk (VaR represented by the yellow bars) and the amount of the contribution fund during the last year.

 

 

Contribution Fund and Value at Risk

 

 

 

 

 

 

 

 




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