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Clearing fund - Financial definition

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Translations:      FR  fonds de garantie de la compensation (n.m.)     ES  fondo de compensación (n.m.)     DE  Ausgleichfonds (n.m.) , Clearingfonds (n.m.) , Solidaritätsfonds (n.m.) 

Concise definition of the term clearing fund

A clearing fund is a prefunded default arrangement that is composed of assets contributed by a central counterparty's participants. It may be used by the CCP in certain circumstances to cover losses or withstand liquidity pressures resulting from participant defaults.

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