Credit, Concentration and Wrong Way Risk

The Central Counterparty, BME CLEARING, puts itself before both counterparties in a financial transaction.

When interposed, several risks affect the CCP. The main one would be the counterparty risk, also called credit risk.

However, there are other risks that affect BME CLEARING, amonge them concentration risk and the wrong way risk.

In the side menu, you would be able to find further details about these three risks.