counterparties definition

• All counterparties with 500 or more non cleared OTC derivative contracts outstanding with a single counterparty. What does counterparty mean? Find 30 ways to say COUNTERPART, along with antonyms, related words, and example sentences at Thesaurus.com, the world's most trusted free thesaurus. Found inside – Page 318... to short bond position, 268 definition, 264 transforming long bond exposure, ... 217 Purchasing counterparties definition, 161 Delta characteristics, ... Definition of counterparty : a party to a financial transaction Examples of counterparty in a Sentence Recent Examples on the Web The new function, called counterparty market risk, will … Found inside – Page 185Definition 8.1. The cumulative dividend process D of a counterparty riskfree CDS contract maturing at time T is given as, Dt = ∫ ]0,t] δ1u dH1 u − κ ∫ ]0 ... Definition and high quality example sentences with “counterparties” in context from reliable sources - Ludwig is the linguistic search engine that helps you to write better in English definition. As with the definition of “covered company,” commenters argued that aggregation of connected counterparties based on financial consolidation would capture true connected exposure risks consistent with the purposes of section 165(e) of the Dodd-Frank Act. The European Market Infrastructure Regulation (EMIR) is a European regulation regarding derivatives, central counterparties and trade repositories. CCPs interpose themselves between counterparties to a derivative contract, becoming the buyer to every seller and the seller to every buyer. Found inside – Page 193EC5 In respect of credit exposure to single counterparties or groups of connected counterparties, laws or regulations explicitly define, or the supervisor ... In essence, these market infrastructures external counterparties pl —. Definition of connected counterparties. Learn more. EMIR introduces a harmonised set of organisational, business conduct and prudential requirements for clearing service providers. Hedge Counterparties. EMIR, in conjunction with the technical standards that entered into force on 15 March 2013, also addresses non-financial counterparties. (1) An eligible counterparty is a client that is either a per se eligible counterparty or an elective eligible counterparty. Found inside – Page 238An institution reports to the supervisor all exposures to a counterparty or a group ... of connected counterparties, laws or regulations explicitly define, ... Under the definitions of the Regulation on OTC derivatives, central counterparties and trade repositories (Regulation (EU) 648/2012) also known as the European Markets Infrastructure Regulation (EMIR), an alternative investment fund (an AIF) managed by an alternative investment fund manager (an AIFM) authorised or registered in accordance with the Alternative Investment Fund … Updated: 16 Apr 2012. Financial counterparties (FC) trading with non-financial counterparties – the FCs. An in-depth assessment of possible counterparties based on a number of criteria, such as credit rating, credit spread, and experience in trading a particular instrument (in other words, a sizeable and active trading book) is usually required. In doing so, CCPs become the focal point for derivative transactions thus increasing market transparency and Included within the definition of IFs are: undertakings whose units or shares are, at the request of the holders, repurchased or redeemed directly or indirectly out of the undertaking’s assets; and undertakings which have a fixed number of issued shares and whose shareholders have to buy or sell existing shares when entering or leaving the fund. Citi Market's Terms of Business have been updated. main counterparties pl —. The opposite party in a financial transaction, especially in a swap contract. Found inside – Page 64Moreover, the definition of interrelated counterparties in the framework is ambiguous. It is based on two criteria: control relationship and economic ... (Also Connected Counterparties or Connected Clients).Related counterparties are typically part of a Counterparty Group. 8 The definition of an FC also extends to the AIFM, if the AIFM is entering into OTC derivative for its own account. The purpose of this notice is to indicate that the Canadian-domiciled central counterparties (CCPs) listed in Table 1 can be considered qualifying central counterparties (QCCPs) under the standard on the capital treatment of certain bank exposures to central counterparties developed by the Basel Committee on Banking Supervision (BCBS). Found insideDescription and The definition of closely related counterparties " is set in the Disclosure Oic , which states findings re ECS that : " group of closely ... Found inside – Page 195cooperative shall be the ''electing counterparty,'' as such term is used in ... such member is: (i) Exempt from the definition of ''financial entity'' ... What are Retail counterparties? Reporting of large exposures This means that entities which are not issuers of financial instruments, or whose business is not subject to BaFin's authorisation, are also subject to BaFin's supervision as regards the OTC derivative transaction business. Found insideClearing and Central Counterparties Alexandra G. Balmer ... The definition for a clearinghouse is broader as opposed to a central counterparty. Found inside – Page 113Furthermore, banks having exposures to foreign counterparties or ... The supervisor may exercise discretion in applying this definition on a case by ... as between the two counterparties ; Material Swaps Exposure > US$8 billion16 > €8 billion17. The UTIs should be generated and communicated in a timely manner so that the … Intermediaries. Found inside – Page 348may be modeled by defining a loss cascade, updating at each step the losses to balance sheets resulting from previously defaulted counterparties: Definition ... The concept of Related Counterparties applies to all legal entities that may exhibit economically strongly correlated (dependent) behaviour, in particular in the case of a Credit Event due to economic and legal relations. Found inside – Page 119Our insolvency laws provide preferential treatment to counterparties to ... these provisions contain significant variations in the definitions of the ... Primer to risk in capital markets: Risk by definition is the uncertainty in any transaction. Found inside – Page 202EC5 In respect of credit exposure to single counterparties or groups of connected counterparties, laws or regulations explicitly define, or the supervisor ... (noun) Found insideThe definition of a large exposure to a counterparty or a group of related counterparties (Paragraph 9 of APS 221 ] is an exposure greater than or equal to ... Found inside – Page 108All of this makes counterparty risk a key concern for OTC derivative markets. ... 7.2.1 Definition Credit exposure (hereafter often simply known as ... COB 2.5 Record keeping. The EMIR definition of “financial counterparty” (FC) was expanded to include alternative investment funds (AIFs) established in the EU (even those with a non-EU manager) and central securities depositaries. COB 2.3.9. Across the world organisations get into business relationships with various counterparties, including third parties such as vendors/agents, business associates, channel partners and Counterparty Party on the other side of a trade or transaction. Changes to the eligible counterparty regime in MiFID II Under Article 50(1) of the MiFID Implementing Directive, it is currently permissible for member states to allow all types of professional client to be recategorised as eligible counterparties, subject to … größte Kontrahenten pl. If an ADI’s exposures to a counterparty or group of connected counterparties approaches the level quantified in the definition of a large exposure under paragraph 16 of APS 221 or the applicable large exposure limits, the ADI will need to extend its assessments as necessary. counterpane synonyms, counterpane pronunciation, counterpane translation, English dictionary definition of counterpane. Found inside – Page 3434 Counterparty Credit Risk, Collateral and Funding Definition 2.2.6 Expected Exposure Profile (EEP). This is defined as the curve t ↦→ EEx(t). Found inside – Page 195cooperative shall be the ''electing counterparty,'' as such term is used in ... such member is: (i) Exempt from the definition of ''financial entity'' ... Found inside – Page 1044EXCURSUS: Central Clearing Counterparty Definition A clearinghouse acts as ... Thus, the clearinghouse also takes on the credit risk of both counterparties. 5 Eligible counterparties (ECP) An eligible counterparty is a client that is either a per se eligible counterparty or an elective eligible counterparty. A counterparty is usually the entity with whom one negotiates on a given agreement, and the term can refer to either party or both, depending on context. Found inside – Page 229'Associated business' is defined246 as meaning business carried on in connection ... The definition of 'customer' does not include 'market counterparties. counterpane synonyms, counterpane pronunciation, counterpane translation, English dictionary definition of counterpane. counterparty risk n —. Found insideThe counterparty concentration exposures are intensively monitored and ... or groups of connected counterparties, laws or regulations explicitly define, ... There are also exclusions for central securities depositories and funds that serve share purchase plans. Learn the definition of 'wholesale counterparties'. counterpart definition: 1. a person or thing that has the same purpose as another one in a different place or organization…. As a result, some entities, which would generally be considered as financial counterparties in light of their activity (e.g. TRs also publish a weekly overview of aggregate derivatives positions per asset class. Some facilitate the movement of cash and securities needed to settle transactions. This newsflash summarizes certain key points of EMIR Refit and discusses what these changes mean for Swiss counterparties. The term security-based swap dealer in general means any person who: (1) Holds itself out as a dealer in security-based swaps; (2) Makes a market in security-based swaps; (3) Regularly enters into security-based swaps with counterparties as an ordinary course of business for its own account; or (4) Engages in … EMIR introduces a harmonised set of organisational, business conduct and prudential requirements for clearing service providers. Found inside... exact term "connected counterparties" but instead refer to "connected persons," which is defined in Regulation 57 (Definitions) as "two or more persons, ... In doing so, CCPs become the focal point for derivative transactions thus increasing market transparency and COBS 3.6.1 R 03/01/2018 RP. 1. Found inside – Page 35In this section, we define the measures commonly used to quantify exposure. ... counterparty risk will require the definition and use of several metrics. Found inside – Page 196revised definition of a group of connected parties will apply starting ... counterparties exists if two or more individual counterparties are linked by: - a ... A CCP becomes counterparty to trades with market participants through novation, an open offer system, or another legally binding arrangement. Counterparty is a legal and financial term. Variation Margin. Definition of counterpart. Counterparty definition May 01, 2021 / Steven Bragg. Found inside – Page 166... groups of connected counterparties, laws or regulations explicitly define, ... The supervisor may exercise discretion in applying this definition on a ... COB 2.4 Procedures relating to client classification. For example, if you sign a contract to sell an item that you produce to a buyer, you and the buyer are counterparties to the contract. Definition. Found inside – Page 90... groups of connected counterparties, laws or regulations explicitly define, ... The supervisor may exercise discretion in applying this definition on a ... Found inside – Page 95Expand the definition of large exposures to include: ‐ Subsidiaries and affiliates of a counterparty of a bank; ‐ Parties that are controlled by or have ... Found insideHowever, whilst positive and negative exposures defined for counterparty ... are some distinct differences that must be considered: Definition of value. (ii) Deadline for the receipt of funds from counterparties Counterparties shall pay intervention amounts at the latest by 1 p.m. ECB (CET) time on value date. Both counterparties outsource the reporting requirements to the same third party In order to report a trade to a TR, the fund must obtain a Legal Entity Identifier (LEI). In relation to MiFID business or the equivalent business of a third country investment firm, a client can only be an eligible counterparty in relation to eligible counterparty business. Similarly, the counterparties in financial transactions known as forwards or swaps are the banks or corporations … Consistent with this, MiFID II is proposing a new obligation on firms to communicate with eligible counterparties in a … major counterparties pl —. the other party that participates in a financial transaction, Changes to the eligible counterparty regime in MiFID II Under Article 50(1) of the MiFID Implementing Directive, it is currently permissible for member states to allow all types of professional client to be recategorised as eligible counterparties, subject to … Counterparty. Counterparties to executory contracts and lessors need to be extremely vigilant when a debtor-in-possession or trustee seeks to assume an executory … Learn more. (a) Acknowledgment means a written or electronic record of all of the terms of a swap signed and sent by one counterparty to the other. elective eligible counterparties. Counterparties in a market trade can be categorized in different ways. MiFID, UCITS, and AIFMD). externe Gegenparteien pl. Counterparty Risk. Consequently, counterparties shall be required to pay before a predefined deadline. US$500,000 per counterparty • Maximum US$50,000 alternative minimum transfer amount (MTA) for … That is, the buyer and the seller of a good are the counterparties to the sale of that good. American Heritage® Dictionary of the English Language, Fifth Edition. Any legal entity can be counterparty. There must be a counterparty in order to complete a transaction. types of professional client to be recategorised as eligible counterparties, subject to certain requirements being met. For the purpose of EMIR Trade Reports, collateral is broken down into the following 3 types: Initial Margin. Both counterparties outsource the reporting requirements to different third parties 5. EMIR identifies two sub-categories of Non-Financial Counterparties (NFC). Changes to the definition of financial counterparty. Found inside – Page 239We start by giving definitions for the basic stochastic processes we use, and then recall the concept of change of measure. We give also a brief overview of ... ties.Finance. • Required to analyse the possibility of portfolio compression to reduce counterparty risk at least twice a year. Found inside – Page 1134Thus the final rules do not define " permissible derivatives counterparty " . ... designed to protect an OTC derivatives dealer's counterparties , as well ... The review and qualitative determination to establish economic interdependence will be challenging as Covered Banks will have to acquire information about their counterparties that is not easily discernible or readily available from public sources. counterparties – Ability to exit contracts is limited – One or both counterparties are usually large dealers – Dealing is highly concentrated • Collateral is used to mitigate credit risk – Primarily for dealer and inter-dealer exposures • Positions are opaque – No central locus for systemic information Counterparties The persons or institutions engaging in a transaction. (noun) In any financial contract, the persons or institutions entering the contract on the opposite sides of the transaction are called the counterparties. Define counterpane. 1. client can only be an eligible counterparty in relation to eligible counterparty business ( PRIN … Found inside – Page 20... exposures has defined connected counterparties as a group of counterparties linked ... This definition is wide enough to include connected parties under ... Multilateral development banks, central banks and non-financial counterparties publicly owned or guaranteed (social security funds etc.) An entity that interposes itself between counterparties to contracts traded in one or more financial markets, becoming the buyer to every seller and the seller to every buyer and thereby ensuring the performance of open contracts. noun a person or thing closely resembling another, especially in function: Our president is the counterpart of your prime minister. For reference, we set out below links to Citi Market's Terms of Business for Professional Clients and Eligible Counterparties. Counterparties definition: a person who is a party to a contract | Meaning, pronunciation, translations and examples To account for the risk arising from such an IRS contract, Alpha bank is required to calc… Found inside – Page 105... for the Bankruptcy Code definition of such a contract, a counterparty would ... of financial contract was not available for all types of counterparties. Plural form of counterparty. These counterparties might be customers of each other, suppliers, or connected in other ways. MiFID II is not proposing any direct changes to the current regime. The Risk may manifest itself in multiple forms including market risk, credit risk, operational risk, legal & compliance risk, etc. Definition of Connected Counterparty: In some cases, a bank may have exposures to a group of counterparties or clients with specific relationships or structural dependencies so that if one of them were to fail, all of them would most likely fail. A group with this type of connection, under the regulation, must therefore be treated as a single counterparty. Hedge Counterparties means the party or parties that, from time to time, will enter into Hedging Contracts with the Issuer in accordance with the Covered Bonds Law. Enrich your vocabulary with the English Definition dictionary Potential losses which could stem from movements in the great English corpus Page 145 groups! Conduct and prudential requirements for clearing service providers 20... exposures has connected! 1. over-the-counter ( OTC ) financial counterparties of portfolio compression to reduce counterparty risk a key concern OTC... Uti and communicate it to the AIFM, if the AIFM, if the AIFM is entering into derivative! Subject … Found inside – Page 185Definition 8.1 a legal instrument: duplicate …. Forms including market risk, credit risk of both counterparties outsource the reporting requirements to different third 5... 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