Foreign exchange forward contract and Member nominated trustee: Difference between pages

Revision as of 09:14, 22 August 2013

(MNT).

Pensions.

Under UK pensions legislation a minimum proportion of trustees must be nominated by the members of the scheme.

This proportion is currently one third.

Also known as Employee nominated trustees.

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-A transaction which solely involves the exchange of two different currencies:
+(MNT).
-#on a specific future date
+''Pensions.''
-#at a fixed foreign exchange rate which is pre-agreed at the outset of the contract.
+Under UK pensions legislation a minimum proportion of trustees must be nominated by the members of the scheme.
-Foreign exchange forward contracts are used - among other purposes - for hedging forward foreign exchange exposures.
+This proportion is currently one third.
-For example known or likely future currency receivables and payables.
-They are priced by adjusting the spot foreign exchange rate to reflect the interest rate differential between the two currencies involved for the forward period.
+''Also known as Employee nominated trustees.''
-Also known as a Forward foreign exchange contract, or a Foreign exchange forward.
 == See also ==
-* [[Forward contract]]
+* [[Trustees]]
-* [[Hedging]]
-* [[Non-deliverable forward]]
-* [[Synthetic]]
-[[Category:Manage_risks]]