Counterparty

Part of speech: noun

Definitions

1. The party involved opposite another in a contract, trade, or financial transaction
2. An entity that participates on the other end of an agreement or deal
3. The person or organization engaged as the opposite participant in a business or legal arrangement

Etymology: The "party" in "counterparty" is the older half of the word. "Party" came into English from Old French "partie" and originally meant a part or share of something, and only later came to mean a group of people. "Counter-" comes from Latin "contrā," meaning "against" or "opposite," which passed through Old French "contre-" and Anglo-Norman "countre-" before arriving in Middle English as "counter-." The two pieces were joined to describe whoever stands opposite you in a deal. The sense of "counter-" that gives the compound its meaning is the one found in words like "counterpart" and "counterweight," where the prefix signals an opposing or corresponding element. So a counterparty is literally the opposing part of an agreement: the other side of the bargain, rather than a companion at a gathering.

Synonyms: opponent, adversary, counteragent, counterpart, partner