Noun
counterparty (plural counterparties)
(finance, insurance, law) The other party to a financial transaction
An August 2012 survey by the Financial Services Authority concluded that risks were limited and had reduced as a result, inter alia, of larger margins being required by counterparty banks, but might change rapidly according to market conditions. Source: Internet
ILS Capital noted that a substantial number of current cedents have already agreed to purchase non-collateralized reinsurance contracts from Prospero Re, and several reinsurance brokers have approved Prospero Re as a non-collateralized counterparty. Source: Internet
Other rules require diversifying counterparty risk and portfolio stress testing against extreme scenarios, which tend to identify unusual market liquidity conditions and avoid investments that are particularly vulnerable to sudden liquidity shifts. Source: Internet
Market volatility, counterparty risk and other issues are posing significant challenges to buy-side equity traders at the same time that their brokers are having to rethink their own business models. Source: Internet
Over the past two years, the buy-side has begun to voluntarily clear single names to achieve capital efficiency and manage counterparty risk ahead of any regulatory mandate. Source: Internet
Given the limited number of strong counterparties in the current market, we are not able to mitigate all of our and our clients' counterparty credit risk. Source: Internet