Guillaume Vuillemey discusses central clearing counterparties (CCPs) for derivatives. The first CCP was created in Le Havre (France) in 1882, in the coffee futures market. Vuillemey explains how central clearing changed the geography of trade flows Europe‐wide, to the benefit of Le Havre. Central clearing also facilitated entry of new traders in the market. The successful contracting innovation quickly spread to other exchanges.
Image courtesy of Guillaume Vuillemey