Swap

1.

Any agreement which:

• Provides for the exchange of one or more payments based on the value or level of one or more rates, currencies, commodities, securities, instruments of indebtedness, indices, quantitative measures, or other financial or economic interests or property of any kind;
• And which transfers between the parties to the transaction, in whole or in part, the financial risk associated with a future change in any such value or level;
• Without also transferring a current or future direct or indirect ownership interest in an asset or liability that incorporates the financial risk transferred by the swap.

Examples of this type of swap include interest rate swaps, basis swaps, and cross currency interest rate swaps.

They as sometimes known as capital market swaps, because of their longer-term nature.

2.

A foreign exchange swap, which is a shorter-dated instrument.

See also

• Accreting swap
• Amortising swap
• Asset-based swap
• At the money
• Basis swap
• Capital market swap
• Collateral swap
• Constant maturity credit default swap
• Contract for differences
• Counterparty
• CPI fixing swap
• CPI swap
• Credit default swap
• Credit default swap index
• Cross-currency interest rate swap
• Currency swap
• Debt for equity swap
• Derivative instrument
• Differential swap
• Equity swap
• Fixing instrument
• Floating/floating swap
• Foreign exchange swap
• Forward start swap
• ICE Swap Rate
• In the money
• Inflation swap
• Interest rate swap
• International Swaps and Derivatives Association (ISDA)
• Liquidity swap
• Long-dated swap
• Longevity swap
• Out of the money
• Overnight indexed swap
• Mid-swap (MS)
• Notional principal
• Securitisation swap
• Swap Break Clauses
• Swap execution facility
• Swap overlay
• Swap points
• Swap rate
• Swap spread
• Swap spread risk
• Swaption
• Total return swap
• Zero-coupon swap