What are counterparty limits?

What are counterparty limits?

What are counterparty limits?

A counterparty credit limit (CCL) is a limit that is imposed by a financial institution to cap its maximum possible exposure to a specified counterparty. CCLs help institutions to mitigate counterparty credit risk via selective diversification of their exposures.

What counterparty means?

Definition of counterparty : a party to a financial transaction.

What is a counterparty in derivatives?

Derivative Counterparty means any party to any Derivative Agreement other than the Issuer or the Indenture Trustee.

What are counterparties in finance?

A counterparty is the other party that participates in a financial transaction, and every transaction must have a counterparty in order for the transaction to go through. More specifically, every buyer of an asset must be paired up with a seller who is willing to sell and vice versa.

What is meant by counterparty risk?

Counterparty risk is the probability that the other party in an investment, credit, or trading transaction may not fulfill its part of the deal and may default on the contractual obligations.

What does counterparty mean in business?

A counterparty is simply the other side of a trade – a buyer is the counterparty to a seller. A counterparty can include deals between individuals, businesses, governments, or any other organization. Counterparty risk is the risk that the other side of the trade will be unable to fulfill their end of the transaction.

What is another word for counterparty?

In this page you can discover 4 synonyms, antonyms, idiomatic expressions, and related words for counterparty, like: issuer, repo, virt-x and acquirer.

What does counterparty mean in banking?

A counterparty in a financial transaction is the person or entity on the other side of the agreement. Any trade must have at least two parties who serve as counterparties for each other. For every buyer in a purchasing deal, there must be a seller.

What is the meaning of counterparty risk?

What is counterparty group?

Related to Counterparty Group. Counterparty means a Participant or a Participant’s Account or Customer whose Legal Entity Identifier is reported by BSEF to an SDR as a counterparty to a Trade. Hedging Counterparty means a broker-dealer registered under Section 15(b) of the Exchange Act or an Affiliate thereof.

What are counterparties to a company?