Foreign Exchange Trading Clause Samples
The Foreign Exchange Trading clause governs the terms and conditions under which parties may engage in the buying and selling of foreign currencies within the scope of their agreement. It typically outlines the procedures for executing trades, settlement timelines, and the applicable exchange rates or reference sources. This clause ensures that both parties have a clear understanding of how currency transactions will be handled, thereby reducing the risk of disputes related to exchange rate fluctuations or settlement processes.
Foreign Exchange Trading. The Subadviser, as the Fund’s agent and attorney-in-fact, when it deems appropriate and without prior consultation with the Investment Adviser or the Fund, may purchase, sell, exchange or convert foreign currency in the spot or forward markets in connection with portfolio trades as agent, at the market rate, as determined by the Subadviser in its sole discretion. Conversion of currencies into and out of the base currency of the Fund in unrestricted markets with respect to portfolio trades shall be performed by the Subadviser. Conversion of currencies into and out of the base currency of the Fund in restricted markets and income repatriation shall generally be the responsibility of the Fund’s custodian.
Foreign Exchange Trading. To the extent that You use the Services for the purposes of FX Trading, the following shall apply:
Foreign Exchange Trading. The Sub-Adviser will direct foreign exchange trading for portfolio trading purposes in unrestricted markets to broker/dealers on the basis of the Sub-Adviser’s best execution analysis. Conversion of currencies into and out of the base currency of the Fund in restricted markets will be the responsibility of the Fund’s custodian (“Custodian”), not of the Sub-Adviser. Unless otherwise agreed by Sub-Adviser in a writing signed on behalf of the Sub-Adviser, income repatriation transactions will be the responsibility of the Custodian, not of the Sub-Adviser. To the extent that the Custodian performs foreign exchange transactions, the Sub-Adviser shall not have the ability to control such transactions and will be limited in its ability to assess the quality of such transactions. In addition, whether a market is considered to be restricted will depend on a number of factors, including, but not limited to, country specific statutory documentation requirements, country specific structural risks, operational constraints, and convertibility issues. In addition, the Adviser and the Fund understand that the Sub-Adviser’s and Custodian’s list of restricted and unrestricted markets may change over time and that the Sub-Adviser’s and Custodian’s lists may also differ depending on the type of transaction. Accordingly, the Sub-Adviser shall be entitled to consult with third parties, including, but not limited to, broker-dealers and custodians, and rely upon such information in making a good faith determination on whether a market is considered restricted.
Foreign Exchange Trading. Foreign exchange transactions involve multiple risks, including currency risks and settlement risk. Economic or financial instability, lack of timely or reliable financial information or unfavourable political or legal developments may substantially and permanently alter the conditions, terms, marketability, or price of a foreign currency. Profits and losses in transactions in FX will also be affected by fluctuations in currency where there is a need to convert the product’s denominations to another currency. Time zone differences may cause several hours to elapse between a payment being made in one currency and an offsetting payment in another currency. Relevant movements in currencies during the settlement period may seriously erode potential profits or significantly increase any losses. Engaging in foreign exchange (FX) trading (buying one Currency in exchange for another) exposes you to the risk of adverse changes in exchange rates. Exchange rates can be volatile and are driven by a variety of factors affecting the economies of the jurisdictions whose Currencies you are trading.
Foreign Exchange Trading. 3.1. At the request of the Client, but subject to written confirmation by the Bank (the “FX Letter”), the Bank may extend a foreign exchange trading facility (the “FX Facility”) to the Client pursuant to which the Client may trade in for- eign currencies on a spot (“Spot Transaction”) or forward basis (but not exceeding one (1) year) (“Forward Transac- tion”) or trade in options relating to a Spot Transaction
3.2. Upon entry into an FX Transaction, the Bank will issue a confirmation to the Client, but failure to issue or delay in issuing a confirmation shall not prejudice or invalidate the entry into or the terms of such FX Transaction. The parties agree that all FX Transactions are entered into on the basis that they constitute a single business and contractual rela- tionship between the parties and are made in consider- ation of each other.
3.3. The Bank may indicate to the Client from time to time the maximum aggregate notional amount of FX Transac- tions which the Client can enter into under the FX Facility. However, neither the fixing of such limit nor the indication thereof to the Client in any way obliges the Bank to enter into any FX Transaction with the Client. The Client further acknowledges and agrees that the FX Facility limit may change at any time and from time to time as the Bank sees fit and that the Bank need not give any reason for such change and need not obtain consent from or give any notice to the Client.
3.4. Without prejudice to the above, the Client may not enter into any FX Transaction unless the Charged Assets Value is not and will not be less than the Total Indebted- ness both before and after the proposed FX Transaction. In addition, the Client must ensure that the Total Indebted- ness is not more than the Charged Assets Value through- out the duration of the FX Facility.
3.5. If the Total Indebtedness is more than the FX Call Margin of the Charged Assets Value, the Bank may at any time thereafter require the Client to deposit or cause
3.6. If the Client fails to comply with a demand by the Bank pursuant to Clause 3.5., the Bank may at any time there-
3.7. In addition and without prejudice to the foregoing, if the Total Indebtedness is more than the FX Close-Out
3.8. Upon the occurrence of any Termination Event or potential Termination Event or upon the termination of the FX Facility (whether in whole or in part), the Bank may at any time thereafter, at its sole discretion and without prior notice to the Client, elect to close ...