Counterparties


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Counterparties

The parties on either side of an interest rate swap or a currency, equity or commodity swap, or to an options or futures position.

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.
References in periodicals archive ?
Following the entry into force of EMIR Refit on 17 June 2019, some counterparties are exempted from the clearing obligation while still being subject to the trading obligation.
In case of groups of connected counterparties, the sum of all the exposure values of a bank to a group of connected counterparties must not be higher than 25 per cent of the bank's available eligible capital base at all times, it said.
Counterparty Payment Obligations: The rating on the IBB revenue bonds reflects the structured nature of the prepaid energy transaction and Fitch's analysis of the principal transactional counterparties, including JPMorgan Chase & Co.
"We had the majority of our trading counterparties join the platform within 45 days.
Part 3(a) of the ISDA Schedule governs the documentation requirements for the counterparties to the Master Agreement.
The counterparty risk externality described by Acharya and Bisin docs not arise in markets where all trades are cleared through a central counterparty and positions are visible to all other counterparties. The improvement in transparency is evident in the central-counterparty market structure depicted figure 2.
The firm said, 'The swap counterparties' actions have materially prejudiced Syncora and, for various reasons, compromised the swap counterparties' ability to claim under the swap insurance in the future.'
Factors that could lead to an upgrade or downgrade of the underlying transaction include (1) change in the credit quality of the counterparties and 2) a change in the expected performance of the underlying collateral.
Central Counterparties (CCPs) have played an integral role in reducing counterparty risk over the past few decades by guaranteeing the settlement of trades on exchanges.
However, there are exceptions to Chapter 11's reorganization orientation, with one of the most important being that accorded to the bankrupt's derivatives and financial repurchase (known to all involved as 'repo') counterparties. They, unlike typical creditors, can seize and liquidate collateral, terminate their contracts with the bankrupt, and keep both preferential eve-of-bankruptcy payments and fraudulent conveyances they obtained from the debtor, which other creditors would have to return to the bankrupt.
25 June 2013 -- BNY Mellon (NYSE: BK) said it has been awarded a patent from the United States Patent and Trademark Office for a key process enabling the secure management of collateral between counterparties via its Margin DIRECT(SM) service.
First, it ignored the providers' relative credit quality; the company treated all counterparties as equal.