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Anybody who has Enron as a counterparty in a trade might be concerned about getting paid".
The other company, the counterparty, in the deal assumes the risk of future price changes and quotes a fixed price that includes its own profit.
In the past, investors had to go through a counterparty in Hong Kong to invest in Chinese stocks and bonds, which could carry a higher cost.
But as with the association's current discussions, the museums' counterparty in those deals was the Culture Ministry, which is formally separate from the prosecutor's office.
At its simplest, financial firms borrow in the repo market by posting bonds to a so-called counterparty in return for cash.
The pension scheme will make fixed payments to a counterparty, in return for receiving the payments due to pensioners however long they live.
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Christopher Wood, who pens investment letter Greed & Fear each week for CLSA (Credit Lyonnais in Asia) says, "The desire of European banks both to deposit money at the ECB and borrow from it is a signal that there is a fundamental lack of confidence in counterparty risk in the system".
Fraud in London may begin in Singapore, and involve counterparties in Zurich.
They are also the banks' counterparties in transactions such as credit-default swaps.
Another worrying precedent was the generous treatment of troubled banks' derivatives counterparties in 2008.
"I hope there are counterparties in every part of the country, not just in the most liquid markets.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com