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 Investments in reputations, recourse to the law, and ample collateral reduce the risk of non-performance by the clearinghouse or a counterparty using the clearings system. Matt Sekerke, National Review, 12 Oct. 2021 The company, Ambri, is the counterparty to the antimony supply agreement with Perpetua Resources that was announced in mid-August. David Blackmon, Forbes, 2 Sep. 2021 Credit and reputational risk committees vet clients and transactions, and the bank puts limits on how much could be lost from a single client or counterparty. Margot Patrick, WSJ, 7 June 2021 Previously a counterparty could do up to $30 billion a day in reverse repos with the Fed; now that figure has expanded to $80 billion. Telis Demos, WSJ, 20 Mar. 2021 The new function, called counterparty market risk, will be headed by Amélie Perrier, according to a staff memo. Margot Patrick, WSJ, 9 July 2021 The main reason crypto currency came into existence was to effect payments in a trustless manner (avoiding counterparty risk), in the face of the 2008 financial crisis, outside of the traditional bank network and its ensuing payment rails. Frank Van Gansbeke, Forbes, 28 June 2021 The matter wasn’t escalated further by Mr. Shah or the counterparty-credit-risk team within the investment bank or to group-level managers, people familiar with the matter said. Margot Patrick, WSJ, 7 June 2021 Blockchain can be used to back smart contracts that automate commercial counterparty transactions. Andrew Bruce, Forbes, 11 June 2021

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.

See More

First Known Use of counterparty

1980, in the meaning defined above

Keep scrolling for more

Learn More About counterparty

Time Traveler for counterparty

Time Traveler

The first known use of counterparty was in 1980

See more words from the same year

Dictionary Entries Near counterparty




See More Nearby Entries 

Statistics for counterparty

Last Updated

16 Oct 2021

Cite this Entry

“Counterparty.” Dictionary, Merriam-Webster, Accessed 17 Oct. 2021.

Style: MLA
MLACheck Mark Icon ChicagoCheck Mark Icon APACheck Mark Icon Merriam-WebsterCheck Mark Icon


Test Your Vocabulary

Difficult Spelling Words Quiz

  • alphabet pasta spelling help
  • Which is the correct spelling?
Name That Thing

Test your visual vocabulary with our 10-question challenge!

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!