Far leg: Difference between revisions
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imported>Doug Williamson (Add second definition, about repos.) |
imported>Doug Williamson (Standardise heading layout.) |
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1. ''FX swaps'' | 1. ''FX swaps''. | ||
In an FX swap contract, the later re-exchange of the two currencies in the contract. | In an FX swap contract, the later re-exchange of the two currencies in the contract. | ||
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2. ''Repurchase agreements'' | 2. ''Repurchase agreements''. | ||
In a securities repurchase agreement ('repo'), the second exchange (re-exchange) of securities, previously exchanged in the 'opening leg' or 'near leg'. | In a securities repurchase agreement ('repo'), the second exchange (re-exchange) of securities, previously exchanged in the 'opening leg' or 'near leg'. | ||
Latest revision as of 11:21, 28 November 2017
1. FX swaps.
In an FX swap contract, the later re-exchange of the two currencies in the contract.
This follows the initial exchange of the same currencies and related amounts in the opposite direction, in the 'near leg'.
2. Repurchase agreements.
In a securities repurchase agreement ('repo'), the second exchange (re-exchange) of securities, previously exchanged in the 'opening leg' or 'near leg'.
