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counterparty

American  
[koun-ter-pahr-tee] / ˈkaʊn tərˌpɑr ti /
Also contraparty

noun

Finance.
  • counterparties
    plural
  1. the other person or institution entering into a financial contract or transaction.

    the default of a counterparty.


counterparty British  
/ ˈkaʊntəˌpɑːtɪ /

noun

  1. a person who is a party to a contract

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Other Word Forms

Noun Inflected Forms

Etymology

Origin of counterparty

1980–85; counter- + party (in the legal sense “a signatory”)

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

See Examples For:

The volume estimates it provided still ranked the exchange as Nobitex’s largest counterparty in 2025.

From The Wall Street Journal Jun. 25, 2026

Novartis also was the counterparty in the complicated 2014 deal in which GSK swapped its oncology portfolio for the Swiss firm’s vaccines business.

From MarketWatch Jun. 9, 2026

By market-making, Flutter and DraftKings become a counterparty in certain prediction market trades.

From Barron's May 7, 2026

To manage risk, banks and institutional investors typically have rules capping their exposure to a single counterparty or tenant.

From The Wall Street Journal Apr. 24, 2026

“Never once has any counterparty been willing to sell me my list at my marks,” he wrote in an e-mail.

From "The Big Short" by Michael Lewis

The firm has agreed to pay £13m to the counterparties by 31 December and a further £13m by 31 March 2027.

From BBC Sep. 7, 2026

Perps could too, even if they’re avoided by institutions who prefer dealing with more substantial counterparties.

From The Wall Street Journal Aug. 6, 2026

If LPs experience substantial losses in private-credit investments, they may draw on these facilities or adjust portfolios in ways that affect their bank counterparties.

From MarketWatch Apr. 13, 2026

“We are in active negotiations with multiple counterparties, but as of today, we’ve not executed a definitive lease agreement,” Fermi Chief Financial Officer Miles Everson said on a conference call Monday morning.

From Barron's Mar. 30, 2026

Oddly, as Mike Burry’s investors grew restive, his Wall Street counterparties took a new and envious interest in what he was up to.

From "The Big Short" by Michael Lewis

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