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.
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.
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.
