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counterparty

Line breaks: coun¦ter|party

Definition of counterparty in English:

noun

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.

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Pronunciation: ˌtəːpsɪkəˈriːən
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