Financial Markets

A foreign-exchange forward fixes an exchange rate today for a currency transaction that will be settled on a later date. One party will then deliver a …

Foreign exchange operations cover transactions that change the currency in which funds are denominated. In the Eurosystem, the term is used for dealings involving a foreign …

Foreign exchange settlement risk arises when the two payment legs of a currency trade are completed at different times or through separate systems. A party may …

A forward rate agreement (FRA) is an interest-rate derivative used to determine the cost of borrowing or the return on lending for a future period. The …

A securities forward is a privately negotiated agreement to exchange a debt instrument, commonly a bond or note, on a later settlement date at a price …

Free-of-payment (FOP) settlement occurs when securities are delivered without a cash movement being tied to that delivery. The securities transaction and any related payment are handled …

Fungibility in securities means that units of the same class are treated as equivalent, so one may be delivered or transferred in place of another without …