MFX Instruments

Foreign Exchange Forwards:
Forward contracts are used to lock in an exchange rate for a specific amount at a specific time. It is a binding obligation for an exchange of funds at a future date and there is no payment upfront. Forwards come in two forms, Outright Forwards where the two currency payments are actually exchanged and Non-deliverable Forwards (NDF) where the deal is settled against a fixing rate at maturity. In an NDF, the net amount -- the difference, positive or negative, between the fixing rate and the spot rate, multiplied by the principal amount – is paid by one of the parties in USD or another convertible currency. MFX will primarily provide NDFs.

Cross Currency Swap:
Cross Currency Swaps are bilateral agreements that exchange a series of payments in two currencies, often tied to the interest and principal payments on a loan. Conceptually they can be viewed as a series of forward contracts packaged together. Depending on the terms of the swap, it can exchange currency exposure alone or both currency and interest rate exposure through a fixed for floating rate swap. Swap interest payments are paid on specified settlement dates, and the intervals in between are called settlement periods. Because swaps are customized contracts, settlement dates vary to reflect the terms of the underlying instrument being hedged.

Also See Available Currencies - Maturities - Pricing - Access to MFX Hedging