Definition of counterparty in English:

Share this entry


Pronunciation: /ˈkaʊntəˌpɑːti/

Entry from British & World English dictionary


An opposite party in a contract or financial transaction.
Example sentences
  • 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.
  • Among those financial institutions exposed to Enterprise A are derivatives counterparties whose contracts with the Enterprise have a positive market value.
  • 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.
Share this entry

What do you find interesting about this word or phrase?

Comments that don't adhere to our Community Guidelines may be moderated or removed.