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 ?
Offshore one-year non-deliverable forwards contracts (NDFs), considered the best available proxy for forward-looking market expectations of the yuan's value, traded at 6.
Separately, non-deliverable forwards (NDFs) are to be formally listed on Hotspots wholly-owned swap execution facility (SEF), previously called Javelin, in the coming weeks.
Foreign banks have been sent a form to sign, which asks them for an 'unconditional representation and commitment' to stop trading in any offshore Malaysian ringgit MYRNDFOR= non-deliverable forwards or offshore derivatives.
The deal is intended to accelerate Bats' plans to offer trading of non-deliverable forwards for the foreign exchange market.
Three-month offshore non-deliverable forwards fell 0.
In the offshore market, one-month non-deliverable forwards dropped 0.
This new CCP will begin clearing non-deliverable forwards in Q4 2014 and interest rate derivatives in Q1 2015.
One-year non-deliverable forwards have moved sharply higher in the past week, to 8.
In the offshore non-deliverable forwards, the one-month contract was at 54.
told reporters on Friday that the outstanding value of transactions involving non-deliverable forwards (NDFs) had fallen from $15 billion in 2010 to just $3 billion to date.
We're now hedging 25 to 30 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.
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.

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