coun·​ter·​par·​ty | \ ˈkau̇n-tər-ˌpär-tē How to pronounce counterparty (audio) \

Definition of counterparty

: a party to a financial transaction

Examples of counterparty in a Sentence

Recent Examples on the Web Most bank supervisors and risk officers treat a counterparty in Hong Kong like one in Heidelberg. The Economist, "Hong Kong’s uncertain future Can Hong Kong remain a global financial centre?," 4 June 2020 Often described as the central bank for central banks, the BIS acts as a counterparty and agent for central banks in their transactions. Michael Hiltzik,, "Is this scathing report the death knell for bitcoin?," 18 June 2018 In cases of bankruptcy, it is transferred directly to the counterparty, leaving unsecured creditors empty-handed. Adam Tooze, The New York Review of Books, "How ‘Big Law’ Makes Big Money," 28 Jan. 2020 The implication is that as the economy slows, and as big banks grow wary of counterparty risk, more small banks will be exposed. The Economist, "After three Chinese banks are bailed out, how many more are at risk?," 5 Sep. 2019 But there is a real lack of information on the size of and counterparty to these exposures. Paul J. Davies, WSJ, "Banks and Private Markets: Making Fresh Connections," 8 Aug. 2018 The original proposal would have limited counterparty exposure between the largest banks to 10% of capital. Lalita Clozel, WSJ, "Fed Limits Credit Exposure Big Banks Can Have With Each Other," 14 June 2018 In business, sure, suddenly pulling out of a deal in order to scare your counterparty into meeting your terms can work, sometimes. Jonah Shepp, Daily Intelligencer, "Trump’s Credibility Problem Is Now America’s," 26 May 2018 The appeals court’s latest decision hinged on evidence regarding whether Mr. Litvak was acting as a principal in his own interest, or as an agent for a counterparty on the trade. Chelsey Dulaney, WSJ, "Former Jefferies Trader Litvak’s Conviction Is Tossed Out," 3 May 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'counterparty.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of counterparty

1980, in the meaning defined above

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The first known use of counterparty was in 1980

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Cite this Entry

“Counterparty.” Dictionary, Merriam-Webster, Accessed 20 Oct. 2020.

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