Exchange of futures for swaps

An exchange of futures for swaps (EFS) is a transaction negotiated privately in which a futures contract for a physical item is exchanged for a cash settled swap contract. It is similar to an EFP except that it involves a cash contract rather than a physicals contract. An EFS gives the market participants a chance to liquidate a swap position in an environment that is normally not very liquid.[1][2][3]

References

  1. ↑ "CFTC GLOSSARY: A GUIDE TO THE LANGUAGE OF THE FUTURES INDUSTRY". US Commodity Futures Trading Commission.
  2. ↑ "Exchange of Futures for Swaps". MarketsWiki.
  3. ↑ "Exchange of Futures for Swaps". Traders Blog.


This article is issued from Wikipedia - version of the 6/4/2015. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.