counterparty

A term used to identify the "other" party in a two-party transaction. For example, the counterparty of a buyer is the seller to that buyer. The term counterparty is frequently used to identify the other party in repurchase agreement transactions and in interest rate swap transactions. American Banker Glossary
————
The other participant, including intermediaries ( intermediary), in a swap or contract. Bloomberg Financial Dictionary
————
The opposing side( s) of a transaction undertaken. LIFFE
————
The participant with whom a trade is being transacted. London Stock Exchange Glossary

* * *

counterparty coun‧ter‧par‧ty [ˈkaʊntəpɑːti ǁ -tərpɑːrti] noun counterparties PLURALFORM [countable] FINANCE
the person or company who you are buying from or selling to, when you buy or sell something such as a bond:

• In traditional trading, each side of the trade must assume that the counterparty will make good on its obligation.

ˌcentral ˈcounterparty FINANCE
a system used in some stockmarkets in which investors do not buy and sell to each other directly, so that there is no risk that one side will not pay what is owed:

• The central counterparty effectively stands between buyers and sellers, momentarily taking the shares onto its own books during the transaction.

* * *

counterparty UK US /ˈkaʊntəˌpɑːti/ noun [C]
FINANCE the buyer or the seller in a financial contract: counterparty to sb »

The counterparty to the option buyer is the option writer.

See also CENTRAL COUNTERPARTY(Cf. ↑central counterparty)

Financial and business terms. 2012.

Look at other dictionaries:

  • Counterparty — Party on the other side of a trade or transaction. The New York Times Financial Glossary * * * counterparty coun‧ter‧par‧ty [ˈkaʊntəpɑːti ǁ tərpɑːrti] noun counterparties PLURALFORM [countable] FINANCE the person or company who you are buying… …   Financial and business terms

  • Counterparty — A counterparty (sometimes contraparty) is a legal and financial term. It means a party to a contract. A counterparty is usually the entity with whom one negotiates on a given agreement, and the term can refer to either party or both, depending on …   Wikipedia

  • Counterparty — The other party that participates in a financial transaction. Every transaction must have a counterparty in order for the transaction to go through. More specifically, every buyer of an asset must be paired up with a seller that is willing to… …   Investment dictionary

  • counterparty — noun Date: 1980 a party to a financial transaction …   New Collegiate Dictionary

  • counterparty — noun The other party to a financial transaction …   Wiktionary

  • counterparty — n. party to a financial contract; other party in business transaction or to a financial transaction …   English contemporary dictionary

  • Counterparty —   An ISO term. The corresponding party to the transaction. [/34x] 4*35x.   Party with whom a contract has been concluded, i.e. client, broker, other branch, H.O., other bank or a department …   International financial encyclopaedia

  • counterparty — A person who is a party to a contract …   Big dictionary of business and management

  • counterparty — coun·ter·party …   English syllables

  • counterparty — / kaυntəpɑ:ti/ noun the other party in a deal …   Dictionary of banking and finance

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.