Non-Financial Reporting Directive and Non-deliverable forward: Difference between pages

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imported>Doug Williamson
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imported>Administrator
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''Environmental, social and governance concerns (ESG) - European Union.''
(NDF). A foreign currency financial derivative contract. An NDF differs from an outright foreign currency forward contract in that there is no physical settlement of two currencies at maturity. Rather, a net cash settlement is made by one party to the other.
 
(NFRD).
 
The European Union's Non-Financial Reporting Directive is effective from January 2021.
 
The Regulation significantly expands the scope of sustainability disclosures as it introduces additional reporting requirements for large organisations.
 
Financial and non-financial companies that fall under the scope of the NFRD will have to disclose information on how and to what extent their activities are associated with environmentally sustainable economic activities.


NDFs are commonly used to hedge foreign currency risks in emerging markets where local currencies are not freely convertible, or where there are restrictions on capital movements. An NDF market might then develop in an offshore financial centre, with contracts settled in major foreign currencies, such as the US dollar.


== See also ==
== See also ==
* [[Corporate governance]]
* [[Contract for differences]]
* [[Emissions]]
* [[Foreign exchange forward contract]]
* [[Environmental concerns]]
* [[EPs]]
* [[ESG]]
* [[ESG investment]]
* [[Regulation]]
* [[Social concerns]]
* [[Sustainability]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Compliance_and_audit]]
[[Category:Ethics]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 14:20, 23 October 2012

(NDF). A foreign currency financial derivative contract. An NDF differs from an outright foreign currency forward contract in that there is no physical settlement of two currencies at maturity. Rather, a net cash settlement is made by one party to the other.

NDFs are commonly used to hedge foreign currency risks in emerging markets where local currencies are not freely convertible, or where there are restrictions on capital movements. An NDF market might then develop in an offshore financial centre, with contracts settled in major foreign currencies, such as the US dollar.

See also


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