What term refers to the facilitation by a third party of a financial transaction between two parties?

The term that describes the facilitation by a third party of a financial transaction between two parties is intermediation. This process typically involves an intermediary, such as a broker or a financial institution, which serves to link the buyers and sellers, making the transaction smoother and often more efficient. Intermediation can help reduce transaction costs and provide expertise that may be beneficial for both parties involved.

Other potential options like subordination, negotiation, and arbitration have distinctly different definitions. Subordination relates to the ranking of claims or debts in financial contexts, negotiation refers to the discussion aimed at reaching an agreement, and arbitration is a method of resolving disputes outside of court. Therefore, intermediation is the most accurate term for a third party facilitating a financial transaction.