are used to hedge or speculate against currencies when exchange controls make it difficult for foreigners to trade in the spot market directly.
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.
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.