derivative counterparty
An entity which enters into derivative contracts (used for the purposes of efficient portfolio management or to protect against exchange risks) with the fund or other counterparty.
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Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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  • counterparty — ˌ noun Etymology: counter + party (I) : a party to a financial transaction ; especially : one involved in a derivative contract …   Useful english dictionary

  • Credit derivative — In finance, a credit derivative is a securitized derivative whose value is derived from the credit risk on an underlying bond, loan or any other financial asset. In this way, the credit risk is on an entity other than the counterparties to the… …   Wikipedia

  • credit derivative — Contractual arrangements that allow one party to transfer credit risk of a reference asset, which it may or may not own, to one or more counterparties. The first party may be called the protection buyer , the beneficiary or the originator . The… …   Financial and business terms

  • Leverage (finance) — In finance, leverage (sometimes referred to as gearing in the United Kingdom) is a general term for any technique to multiply gains and losses.[1] Common ways to attain leverage are borrowing money, buying fixed assets and using derivatives.[2]… …   Wikipedia

  • portfolio — port·fo·lio /pōrt fō lē ō/ n: the securities held by an investor: the commercial paper held by a financial institution (as a bank) Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. portfolio …   Law dictionary

  • Counter party risk — Counterparty risk, otherwise known as default risk, is the risk that an organization does not pay out on a credit derivative, credit default swap, credit insurance contract, or other trade or transaction when it is supposed to.[2] Even… …   Wikipedia

  • Credit default swap — If the reference bond performs without default, the protection buyer pays quarterly payments to the seller until maturity …   Wikipedia

  • Contract for difference — In finance, a contract for difference (or CFD) is a contract between two parties, typically described as buyer and seller , stipulating that the buyer will pay to the seller the difference between the current value of an asset and its value at… …   Wikipedia

  • Over-the-counter (finance) — Within the derivatives markets, many products are traded through exchanges. An exchange has the benefit of facilitating liquidity and also mitigates all credit risk concerning the default of a member of the exchange. Products traded on the… …   Wikipedia

  • Futures contract — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

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