One of the mysteries of the English language finally explained.
An opposite party in a contract or financial transaction.
- ‘In option trading, the firm buying options on behalf of its clients deals with a specialist firm known as a counterparty.’
- ‘Among those financial institutions exposed to Enterprise A are derivatives counterparties whose contracts with the Enterprise have a positive market value.’
- ‘The forward is done with one of the top five Russian banks as a counterparty.’
- ‘On the Friday before last weekend, bank officials set about trying to identify the counterparties to the foreign exchange contracts.’
- ‘Jobbers provided the brokers the counterparties to their principals, offering to sell to their buyer or to buy from their seller the particular security.’
- ‘They automatically check counterparties ' credit lines and send information needed for clearing and settlement to back offices.’
- ‘A market system relies on the vigilance of lenders and investors in market transactions to assure themselves of their counterparties ' strength.’
- ‘Credit risk is the exposure to a counterparty's inability to fulfill the derivative contract.’
- ‘For a business that relies on the confidence it instils in counterparties and customers, the damage was already done.’
- ‘In its much-hyped broadband business, for instance, a capacity glut and financial meltdown made it hard to find creditworthy counterparties for trading.’
- ‘We make our counterparties put up collateral to guarantee they're going to perform.’
- ‘Negotiating in bad faith, intending to temporise for some purpose or otherwise mislead the counterparty into thinking that the temporiser was intending to reach a settlement, would probably fall within this wording.’
- ‘But we have to take into account the interests of creditors, trading counterparties and contractors in the continued development of restructuring.’
- ‘The purpose is to have mutuality between each member and the clearing house for set-off purposes: otherwise two separate banks contracting with a defaulting counterparty could not set off their individual losses and gains.’
- ‘However, individual management of credit risks requires relevant and specific knowledge of the counterparty's business and financial status.’
- ‘The company grew to have contracts with some 8,000 counterparties, in hundreds of business lines ranging from credit insurance to metals trading.’
- ‘As well as solving problems between sophisticated counterparties, we need to be in the middle of the country's agenda.’
- ‘A client may well wish to discuss advice received with a partner, or with another adviser, or with a contractual counterparty who might be affected.’
- ‘One gold industry insider said: ‘If producers decide to lock in current prices for their future output, it causes their counterparties to hedge themselves by borrowing extra gold and releasing it into the market.’’
- ‘The error which these companies seem to make is to assume that customers on average will not respond to a high level of attention to detail and service from counterparties or middlemen in small transactions.’
Top tips for CV writingRead more
In this article we explore how to impress employers with a spot-on CV.