A counterparty to a financial instrument is always:

Question

Quizplus · Accepted Answer

The counterparty to a financial instrument is the person or institution that is on the other side of the financial contract. This means that for every buyer of a financial instrument there is a seller, and the seller is the counterparty to the buyer's purchase. Similarly, for every issuer of a financial instrument, there is a purchaser, and the purchaser is the counterparty to the issuer. The government agency guaranteeing the value of the instrument may provide security for the purchaser, but it is not the counterparty to the financial contract.

A Counterparty to a Financial Instrument Is Always