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The term "Fancy dress ball" meaning a costume party is a Brit term that has somehow wormed its way into our regulations. Probably because we just copied their regulations. I guess they like to have them year round, whereas we'll pretty much limit it to Halloween. And perhaps the occasional Sci-Fi convention.
A costume party (American English) or a fancy dress party (British English), mainly in contemporary Western culture, is a type of party where guests dress up in a costume.