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MEFFCLEAR, as a Clearing Central Counterparty, eliminates
counterparty risk acting as buyer to the seller and as seller
to the buyer for those registered trades.
Counterparty risk in a financial trade is related to the capacity and ability of the parties to meet their contractual obligations with respect to said trade. When a trade is registered in the Central Counterparty (CCP), the rights and obligations resulting from said trade for the parties involved are understood to be automatically novated*, through the inclusion of the Clearing House as counterparty, creating new rights and obligations with the Clearing House replacing those which existed between the parties of the original trade. Thus, the Clearing House becomes the buyer to the seller and seller to the buyer. Therefore, registering a trade in the Central Counterparty eliminates
the counterparty risk of said trade. The content of these pages is
purely informative and does not constitute official information
for which MEFF is liable. Therefore, MEFF will not be held responsible
for any errors, modifications or omissions that it may contain,
nor for failing to keep the information up to date, whereby neither
MEFF nor any of its employees or directors will be held responsible
for any type of damage or prejudice, of any nature, that may arise
from the above circumstances
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