Non-Deliverable Forward

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Non-Deliverable Forward

A forward contract on a low-volume or inconvertible currency that cannot be settled by delivery of the underlying. In a non-deliverable forward, the parties net the difference between the exchange rate listed in the contract and the spot rate, and one party pays the other that difference. They are usually settled in U.S. dollars. Multinational corporations sometimes use non-deliverable forwards to hedge against risk associated with comparatively illiquid currencies.
References in periodicals archive ?
Tera Group owns TeraExchange LLC, a Swap Execution Facility (SEF) regulated by the Commodity Futures Trading Commission and provides market participants with access to Bitcoin derivatives, interest rate swaps, credit default swaps and non-deliverable forwards.
Three-month offshore non-deliverable forwards fell 0.
Our clients can leverage our platforms and UK data centre to trade these exchange-listed contracts in concert with non-deliverable forwards and cash FX offerings in our network.
In the offshore market, one-month non-deliverable forwards dropped 0.
The new CCP is called as Comder and is set to start clearing non-deliverable forwards (NDFs) in the quarter fourth of 2014 and interest rate derivatives (IRD) in quarter first of 2015.
One-year non-deliverable forwards have moved sharply higher in the past week, to 8.
We're now hedging 25 to 3o currency pairs a month, using one-month forward contracts, outright forwards for deliverable currencies and non-deliverable forwards for untradeable currencies, and hedging exposures on an aggregated corporate basis.
In the offshore non-deliverable forwards market, one-month contracts were being quoted at a slight discount of 52.
Markets also expect significant depreciation in coming months, with non-deliverable forwards pricing in a roughly 5 percent fall in the pound in the next three months.
Products in the pipeline at ADS Securities include Non-Deliverable Forwards (NDFs) and Contracts For Difference (CFDs).
The central bank of Philippines has said that it would review the structure of non-deliverable forwards (NDFs).
The currency's three-month non-deliverable forwards rose to a record last week, suggesting the currency may fall more than 7 percent against the dollar.

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