NDF Commodities – Flexibilization of Commodities and Commodity Currencies Fixing Dates

Optional

This improvement allows users to indicate NDF Commodities and Commodity Currencies fixing dates higher than the dates currently available.

This project aims to make the NDF Commodities product more flexible so as to allow indicating fixing dates for Commodities and Commodity Currencies higher than the dates currently available.

Through this implementation, users will be able to lock the commodity price and the exchange rate well before the contract’s expiration, thus better adapting the flow of the derivatives to futures contracts that are used as a reference to the contract.

Futhermore, it will be possible to indicate national holiday dates as the contract expiration date and on the Asian average check dates.

Project Tags:

OTC

Completed

Derivatives

Product benefits

Flow adequacy

Greater adequacy between OTC contract flows and reference futures contract flows.

Foreign Exchange hedge

Allows users to lock the commodity price and the exchange rate conversion price on the same date.

Calculated registration

The extension of the fixing date will be enabled via calculated-type registration and this will not pose an operational burden on clients as they will not need to enter prices manually.

About NDF Commodities

NDF Commodities is an OTC product and is usually offered by institutions to their clients as an alternative to hedge commodity prices. NDF Commodities contracts are typically benchmarked to futures contracts on foreign stock exchanges whereby commodities are traded in foreign currency and, therefore, there is also a currency risk involved.

O Termo de Mercadoria é um produto do mercado de Balcão e normalmente é oferecido pelas instituições para seus clientes como uma alternativa de hedge do preço da mercadoria. Estes contratos são comumente referenciais em contratos futuros de bolsas estrangeiras onde a mercadoria é negociada em moeda estrangeria e, portanto, existe um risco cambial também.

Para mais informações, entre em contato com seu RM ou com o time de Produtos – Derivativos Balcão e COE [email protected].