FX Auto Swap Program
We have created a mechanism for certain clients carrying large forex
positions providing superior carry costs when holding positions not closed
out intraday. The design allows clients to benefit from our participation
in the interbank forex swaps market, where implied interest rate spreads are
typically much narrower than spreads available in the retail deposit market.
As an alternative to our standard charges and payments for multiple large
forex balances, we offer an Auto Swap program which allows you to take
advantage of efficient interest rates paid in the Tom/Next market. Our Auto
Swap program continually defers settlement of a spot forex position by
entering offsetting forward positions on each day that the underlying spot
position remains open. A long forex position becomes subject to continuous
and offsetting short positions in the FX swaps market, where settlement
occurs one day, and maturity occurs the next. So long as the forward FX
swaps process is performed, the cost of carry associated with the underlying
position can be handled more efficiently.
The service is freely available only for gross FX positions in excess of
$10 million USD or currency equivalent. We offer the Automatic FX Swaps service on a
commission-free basis and do not charge any markup on the program. Legal US
residents need to be an Eligible Contract Participant (ECP) and be in the
possession of an LEI number (legal identity identifier). We cannot
guarantee a client's inclusion in the program and all inquiries require
compliance approval prior to becoming active. To enroll in the program or for more information email firstname.lastname@example.org or click on the following Auto Swap link for more details.