Deutsche Börse suffered an embarrassing setback in the implementation of its new central counterparty (CCP) system when trades could not be cleared for two days because of a software error.

A CCP takes on risk by guaranteeing payment and also provides post-trade anonymity. When a trade is made, the CCP enters the transaction and becomes the counterparty for the buyer and seller. The CCP also provides netting, with delivery and payment obligations netted on a continuous basis, enabling a reduction of the total settlement volume.