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Terms Beginning with E
       
       
 

Eligible Swap Counterparty

Financial Term


An Eligible Swap Counterparty (ESC) is a type of counterparty used in the financial industry for swap transactions. In order to be considered an ESC, the counterparty must meet certain qualifications, such as being a financial institution, an insurance company, or a corporate entity with a certain level of assets and liabilities.

ESC status is important in the world of swaps because it allows the counterparty to participate in certain types of transactions that are restricted to certain types of counterparties. For example, some types of swaps may only be executed between two ESCs, and other swaps may require one of the counterparties to be an ESC in order to qualify for certain regulatory exemptions or other benefits.

The use of ESCs helps to ensure that only qualified financial entities are participating in complex swaps transactions. This helps to reduce risk and increase transparency in the financial system, as well as to streamline certain types of swaps transactions.


   
     

Eligible Swap Counterparty

Financial Term


An Eligible Swap Counterparty (ESC) is a type of counterparty used in the financial industry for swap transactions. In order to be considered an ESC, the counterparty must meet certain qualifications, such as being a financial institution, an insurance company, or a corporate entity with a certain level of assets and liabilities.

ESC status is important in the world of swaps because it allows the counterparty to participate in certain types of transactions that are restricted to certain types of counterparties. For example, some types of swaps may only be executed between two ESCs, and other swaps may require one of the counterparties to be an ESC in order to qualify for certain regulatory exemptions or other benefits.

The use of ESCs helps to ensure that only qualified financial entities are participating in complex swaps transactions. This helps to reduce risk and increase transparency in the financial system, as well as to streamline certain types of swaps transactions.


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