Since the financial crisis regulators and legislators have required much greater use of CCP's in the clearing and settlement of derivatives. Firstly, illustrate with reference to specific legislation and regulations why this transition has been advocated. Secondly, explain the key principles and risk management protocols of a CCP platform. Thirdly, discuss whether the increasing use of CCP's for clearing and settlement has reduced counter party credit risk with respect to the swaps market. Fourthly, discuss whether regulators might have under-estimated the extent to which CCP's might also pose a high degree of systemic risk.