A clearing organisation that interposes itself through novation or otherwise, between the two original parties to the transaction, becoming the seller to the buyer and the buyer to the seller. Once interposed, a CCP will use risk management techniques to insulate members from any losses should a default occur. Typical functions of a CCP include calculating margin amounts, such as variation margin and initial margin; paying and receiving coupons and fees on trades; receiving and processing post-trade events, such as assignments or terminations; and performing netting of portfolios through various methods.