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Forward Exchange Transactions

Product Name

Forward Exchange Transactions

Product Manual

Forward FX means the foreign exchange transaction in which the Client performs the delivery of funds at the agreed exchange rate at a fixed time limit (one day after the second business day after the dealing Date) in accordance with the foreign exchange contract.

Product Features

The Client entrusts the Bank to buy one currency and sell another currency at the agreed rate and delivery date in order to realize the conversion between different currencies. Forward FX locks the exchange rate level at the date of signing the contract in order to avoid the risk and loss of the client from the exchange rate fluctuations.

Currencies

The Bank is able to deal in USD, EUR, HKD, GBP, RMB and other major currencies on behalf of clients.

Applicable clients

Applicable to the clients with Forward FX dealing requirements in order to effectively lock the forward exchange rate levels.

For the process

1.Opening an account: The client applying for Forward FX dealing should open a current account in the bank, and generally need open a guaranteed deposit account at the same time.

2.Signing an agreement: Prior to the transaction, the client must conduct MIFID test and sign related MIFID documents, ISDA master agreement and Customer FX Transaction Application.

3.Collecting the guaranteed deposit: the client need to pay a corresponding proportion of the guaranteed deposit, or the corresponding credit line of the client need to be reduced by the Bank.

4.Applying the transaction: The client confirms the details of the Forward FX transaction in writing.

5.Conclude a transaction: Once the transaction is completed, the bank will send the transaction confirmation letter in writing to the client.

6.Settlement: the bank and client carry out the actual delivery of funds on the delivery date. Customers may also need to apply for the early or delayed delivery, or Offset Square Liquidate (Do a reverse hedging transaction).

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