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Related to Counterparty: Counterparty credit risk


The other participant, including intermediaries, in a swap or contract.


The persons or institutions engaging in a transaction. That is, the buyer and the seller of a good are the counterparties to the sale of that good. While it could apply to any transaction, the term is most common when referring to the counterparties of a swap.


In any financial contract, the persons or institutions entering the contract on the opposite sides of the transaction are called the counterparties.

For example, if you sign a contract to sell an item that you produce to a buyer, you and the buyer are counterparties to the contract.

Similarly, the counterparties in financial transactions known as forwards or swaps are the banks or corporations that make deals between themselves to protect future cash flows or currency values.

References in periodicals archive ?
The General Counterparty trades will be transacted with Clearing and Execution Services, an agency execution team separate from the trading business at UBS.
The gateway allows users to send Counterparty assets through the Ripple network, and to transfer those assets back into the Counterparty network.
Market participants manage their counterparty risk by their choice of counterparties and instruments and maturities of their trades.
One hint regarding the degree of urgency came over the transom when a certain regulatory agency in Washington called in July to ask about applying structured data collection methods such as eXtensible Business Reporting Language or XBRL to gathering counterparty risk data a la the suggestions made by the Corrigan Group.
In a typical VPF, a taxpayer agrees to sell to a counterparty (usually an investment bank) a variable number of shares on a fixed future date in exchange for an upfront cash payment.
That is, if the derivative increases in value in such a way that it is now worth more to Party A (that is, Party B "owes" Party A), then Party A has a counterparty credit exposure equal to the contract's positive value.
One of the most difficult and important issues to be addressed by the Counterparty Risk Management Policy Group involves the exchange of information between creditors and counterparties.
Your counterparty should be able to demonstrate to your satisfaction that it's going to benchmark well against the study recommendations.
In the transactions listed below, the swap counterparty will implement a credit support annex in order to be in a position to collateralise its obligations under derivative agreements with the respective securitisation transactions.
There was no simple way to list or search LDC's counterparties and no single, authoritative source of counterparty standard settlement instructions (SSI) existed.
Craig Messinger, managing director of Pershing Prime Services, said, "Managing counterparty relationships is one of the most important business and operational issues facing hedge funds and the broader industry today.
This can be achieved through what we call "stress tests," in which a bank conducts "what if" analyses of how credit exposures to a single counterparty could grow under extreme market conditions.