counterparty

American  

[koun-ter-pahr-tee] / ˈkaʊn tərˌpɑr ti /

Also contraparty

noun

Finance.

plural

counterparties

1. the other person or institution entering into a financial contract or transaction.

   the default of a counterparty.

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counterparty British  

/ ˈkaʊntəˌpɑːtɪ /

noun

1. a person who is a party to a contract

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Etymology

Origin of counterparty

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

Example Sentences

“Where’s the legal wrong? Why doesn’t the counterparty have to wait for actual nonperformance of the contract? How are they wronged unless and until the contract is breached? Empirically, it’s hard to say when anticipatory breach happens. Is it an anticipatory breach to muse out loud about not performing? To say you never will perform? Will something short of saying you never will perform do? How do we know the anticipatorily breaching party won’t change its mind?”

From Los Angeles Times

That raises doubts about who would be the government counterparty to any deal and who would guarantee the safety and stability of the investment—the U.S.?

From Los Angeles Times

While Oracle stock initially soared on the deal, it went into an extended slump as investors evaluated the counterparty risk that OpenAI posed, along with Oracle’s own costs of fulfilling the contract should it go through.

From Barron's

While Oracle stock initially soared on the deal, it went into an extended slump as investors evaluated the counterparty risk that OpenAI posed, and Oracle’s costs of fulfilling the contract should it go through.

From Barron's

While a sportsbook is effectively the counterparty for any sports bet, prediction market platforms like Kalshi and Polymarket serve as a facilitator.

From Barron's