Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,898,095,034 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Counterparty

   Also found in: Dictionary/thesaurus, Wikipedia 0.01 sec.
Counterparty
The other participant, including intermediaries, in a swap or contract.

Counterparties
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.

Counterparty. 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.



Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Feedback
Add definition
Mentioned in?  References in periodicals archive?   Financial browser?   Full browser?
 
Related cases are being heard in both the UK courts and the US bankruptcy courts and specifically relate to provisions that subordinate swap termination payments to the rated noteholders as a mitigant to counterparty default risk in synthetic CDOs.
Triple Point Technology[R], global provider of multi-market commodity and enterprise risk management software solutions, announced today that according to its survey of energy and commodity executives, 70% of companies are using spreadsheets or internally assembled systems to manage counterparty credit risk.
Previously, these swaps were traded over the counter with no guarantee on counterparty risk.
 
 
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.