EuVECA and Foreign exchange swap: Difference between pages

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''EU''
A transaction which solely involves:


European Venture Capital Fund (EuVECA) - such funds being the subject of the [http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2013:115:0001:0017:EN:PDF European Union Regulation 345/2013].


The regime is optionally available to fund managers in the [[European Economic Area]] (EEA) that fall below the €500m threshold of the Alternative Investment Fund Managers Directive ([[AIFMD]]).
(A) An exchange of two different currencies
#on a specific date
#at a fixed foreign exchange rate which is pre-agreed at the outset of the contract; and


It gives a passport for raising capital across the EEA by marketing to qualified investors and subject to registration, observance of certain rules for investment and observation of regulatory requirements.


(B) A reverse exchange of the same two currencies
#on a later pre-specified date
#at a fixed exchange rate which is usually different and which is also pre-agreed at the outset of the contract.


Investment has to be primarily in [[Small and Medium-sized Enterprises]] (SMEs). Borrowing (leverage) by the fund is not generally allowed.


The uses of foreign exchange swap contracts include the transformation of short term borrowings or deposits from one currency into another.


EuVECA is distinguished from a European Social Enterprise Fund ([[EuSEF]]) mostly by its investments which are not required to have the primary objective of achieving measurable, positive social impacts.
Not to be confused with a [[Swap]], which is different.


A fund that grows beyond the €500m limit must gain authorisation under the AIFMD - subject to which it may continue to use the EuVECA designation if it meets the other EuVECA requirements.


== See also ==
* [[Foreign exchange]]
* [[Swap]]
* [[CertICM]]


==See also==
[[Category:Manage_risks]]
*[[Social impact bond]]
*[[Venture capital]]
 
 
==Other links==
[https://ec.europa.eu/commission/presscorner/detail/en/IP_17_1477 EU agrees to more support for venture capital and social enterprises 2017]
 
[[Category:Investment]]

Revision as of 11:05, 29 November 2014

A transaction which solely involves:


(A) An exchange of two different currencies

  1. on a specific date
  2. at a fixed foreign exchange rate which is pre-agreed at the outset of the contract; and


(B) A reverse exchange of the same two currencies

  1. on a later pre-specified date
  2. at a fixed exchange rate which is usually different and which is also pre-agreed at the outset of the contract.


The uses of foreign exchange swap contracts include the transformation of short term borrowings or deposits from one currency into another.

Not to be confused with a Swap, which is different.


See also

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