Glossary entry

French term or phrase:

limite d'engagement par contrepartie

English translation:

counterparty exposure limit

Added to glossary by David Wallace
Oct 16, 2005 02:53
18 yrs ago
3 viewers *
French term

limite d'engagement par contrepartie

French to English Bus/Financial Finance (general) financial derivatives
limit on commitments for one's own account? limits on market-making commitments? limit on counter-party commitments?

Context: a company is setting up a "system of limits" to limit its exposure to various types of risk; in this case, to credit risks associated with various derivatives transactions (interest-rate swaps, currency options).

Proposed translations

+2
4 hrs
Selected

counterparty exposure limit

A limit on the amount of (derivative) transactions with single parties.

Measuring and controlling large credit exposures (January 1991)
File Format: PDF/Adobe Acrobat - View as HTML
most banks already apply counterparty exposure limits of their own, designed to prevent. excessive concentration, they already have experience in detecting ...
www.bis.org/publ/bcbsc121.pdf

Municipal Debt Advisory Commission Sample Interest Rate Swap Policy
File Format: PDF/Adobe Acrobat - View as HTML
The District will establish and review counterparty exposure limits. (Not to
exceed amounts for a given. counterparty). Swap Documentation ...
www.ost.state.or.us/divisions/dmd/mdac/MDAC Sample Swap Pol...

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Note added at 15 hrs 48 mins (2005-10-16 18:42:07 GMT)
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It may be useful to point out that a counterparty is just the other party in a financial transaction, not something weird and foreign.

A counterparty is a legal and financial term. It means a party to a contract.
en.wikipedia.org/wiki/Counterparty
Peer comment(s):

agree Jane Lamb-Ruiz (X) : yes but they don't mean per counterparty only..it's per counterparty transaction..if you can't do repeat business with counterparties...that would be ridiculous..the limit is on a transaction with a counterparty, then you can do others..
16 hrs
Thanks. I think it's aggregate exposure at any given time
agree Buzzy : I also take this to be an overall limit per counterparty, not per transaction
23 hrs
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4 KudoZ points awarded for this answer. Comment: "merci bien!"
-1
1 hr

commitment against compensation


commitment for smthg in exchange

You might not want to use counter part in this context
Peer comment(s):

disagree Buzzy : "counterparty" here, not "en contrepartie" dans le sens de "in return for"...
1 day 3 hrs
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8 hrs

commitment limit per market-maker

limit to market-maker commitment for each respective market-maker

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Note added at 8 hrs 17 mins (2005-10-16 11:11:14 GMT)
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same comment as for your other question about "par", re more context needed
Peer comment(s):

neutral lenkl : what makes you think it has to be a market maker? A counterparty is just the other party in a transaction
7 hrs
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-2
3 hrs

risk assessment in stock market activities

In this context, "limite d'engagement par contrepartie" refers to "risk assessment vis-a-vis stock market activities". Briefly stated, it is the analysis of risks, with a view towards minimizing them, within the realm of the stock market (La Bourse, Fr.)

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Note added at 20 hrs 50 mins (2005-10-16 23:43:36 GMT)
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http://64.233.161.104/search?q=cache:K_gpE4DkZNAJ:www.riskva...
Peer comment(s):

disagree lenkl : none of the terms you suggest are in the French phrase
12 hrs
Respectfully accept you disagreement. However, translation is not a literal science. It must have an equivalence in English that is used and applied in said language. If not, word translating machines would be the norm.
disagree df49f (X) : agree with Lenkl - not only are the terms not there, but neither is the meaning...
6 days
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