Wang Kai-Li, Fawson Christopher and Chen Mei-Ling (2007), "Information Flows among Exchange Rate Markets: What Do We Learn From
Non-Deliverable Forward Markets in Asia?
Non-deliverable forwards are used to hedge or speculate against currencies when exchange controls make it difficult for foreigners to trade in the spot market directly.
A
non-deliverable forward is an FX Forward for which the physical exchange of currency at expiry is replaced by settlement between counterparties of the net profit / loss on the contract, calculated off the prevailing spot rate two days prior to settlement.
TT will support trading of spot FX, precious metal and
non-deliverable forward (NDF) contracts through its high-speed gateway to the EBS platform.
Banks hedging of the US dollar via
non-deliverable forward (NDF) contracts with global banks may stop soon, because of the recent directive of the Nepal Rastra Bank (NRB).
One-year
non-deliverable forward contracts traded in Hong Kong continued to express expectations for future yuan depreciation, with quotes at 6.
The Conticap source will further enrich ComStock's datafeed - content received will include FX spot, forwards and swaps, local currency government bonds and
non-deliverable forward foreign exchange.
Non-deliverable forward contracts with a 1-year tenor in Hong Kong traded at 6.
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.
