Difference between revisions of "Non-deliverable forward"

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(Created page with "{{Random_adbox}} A non-deliverable forward contract (NDF) is a foreign exchange derivative in which there is no physical settlement at maturity, but instead is [[cash...")
 
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<div class="item">[http://www.marketsreformwiki.com/mktreformwiki/index.php/FX_Swaps_Regulation FX Swaps Regulation]</div>
<div class="item">[http://www.marketsreformwiki.com/mktreformwiki/index.php/CFTC/SEC_Joint_Final_Rule_on_Swap_Product_Definitions CFTC/SEC Joint Final Rule on Swap Product Definitions]</div>
<div class="item">[http://www.marketsreformwiki.com/mktreformwiki/index.php/Off-Exchange_Forex_Regulation Off-Exchange Retail FX Regulation]</div>
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A non-deliverable forward contract (NDF) is a [[foreign exchange]] derivative in which there is no physical settlement at [[maturity]], but instead is [[cash-settled]] in an international financial center, typically in U.S. dollars.<ref>{{cite web|url=http://www.bis.org/publ/cgfs22fedny5.pdf|name=An Overview of Non-Deliverable Foreign Exchange Forward Markets|org=Bank for International Settlements|date=December 3, 2013}}</ref> In general, NDFs are used in FX transactions involving [[emerging market]] currencies, which are often illiquid and not freely convertible, and often involve restrictions on capital flow.<ref>{{cite web|url=http://lexicon.ft.com/term?term=non_deliverable-forward-NDF|name=Non-deliverable forward|org=FT Lexicon|date=December 3, 2013}}</ref>  
A non-deliverable forward contract (NDF) is a [[foreign exchange]] derivative in which there is no physical settlement at [[maturity]], but instead is [[cash-settled]] in an international financial center, typically in U.S. dollars.<ref>{{cite web|url=http://www.bis.org/publ/cgfs22fedny5.pdf|name=An Overview of Non-Deliverable Foreign Exchange Forward Markets|org=Bank for International Settlements|date=December 3, 2013}}</ref> In general, NDFs are used in FX transactions involving [[emerging market]] currencies, which are often illiquid and not freely convertible, and often involve restrictions on capital flow.<ref>{{cite web|url=http://lexicon.ft.com/term?term=non_deliverable-forward-NDF|name=Non-deliverable forward|org=FT Lexicon|date=December 3, 2013}}</ref>