Common Contracts
1 similar Master Agreement Addendum for Non-Deliverable Forwards contracts
MASTER AGREEMENT ADDENDUM FOR NON-DELIVERABLE FORWARDSMaster Agreement Addendum for Non-Deliverable Forwards • November 2nd, 2020
The Foreign Exchange Committee recognizes that electronic confirmation matching is the most reliable method of confirming foreign exchange transactions. Electronic confirmations decrease market risk, minimize settlement errors and compensation payments, and decrease operational overhead costs. Currently, counterparties confirm most non-deliverable forward (NDF) transactions by exchanging a four-page fax with the economic and non-economic terms of each transaction. To help minimize operational risks, the Committee encourages market participants to streamline and automate the confirmation process for NDF trades by adopting the following process changes for trades between interbank foreign exchange dealers who use the standard ISDA, IFEMA or other Master Agreements:
