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Well-drafted contracts usually attempt to spell out in explicit detail what each counterparty's rights and obligations are in every conceivable circumstance, though there are limits. There are general provisions for how counterparties are treated under the law, and (at least in
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of insurance risk to insurance companies in a role similar to that offered by governments. This term, over time, has become more generally applied to companies offering or requiring retrocession and other forms of
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that act as the ultimate guarantor for loans and indemnities. The term may also be applied, in a more general sense, to companies acting in this role.
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securities transactions. The term is generally used in this context in relation to "
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may exist. The word became widely used in the 1980s, particularly at the time of the
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sector, this term is extended to include companies offering or requiring high-level
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Brose, M. S.; Flood, M. D.; Krishna, D.; Nichols, B., eds. (2014).
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Also within financial services, counterparty can refer to brokers,
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173:Handbook of Financial Data and Risk Information II
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145:The Big Problem of Small Change
55:legal systems) there are many
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59:that shape the common law.
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182:Cambridge University Press
157:Princeton University Press
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63:Financial services sector
18:Counterparty (technology)
16:Not to be confused with
143:; Velde, F. R. (2001).
47:deliberations in 1988.
222:Derivatives (finance)
37:unincorporated entity
75:is used to refer to
73:market counterparty
96:"over the counter"
69:financial services
100:counterparty risk
71:sector, the term
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106:Insurance sector
92:investment banks
85:World Bank Group
57:legal precedents
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116:retrocession
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81:public banks
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33:legal entity
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25:counterparty
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121:reinsurance
110:Within the
77:governments
67:Within the
29:contraparty
27:(sometimes
206:Categories
127:References
53:common law
178:Cambridge
149:Princeton
112:insurance
45:Basel I
31:) is a
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153:Oxford
186:ISBN
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