An exchange of futures for swaps (EFS) is a transaction negotiated privately in which a futures contract for a physical item is exchanged for a cash settled swap contract. It is similar to an EFP except that it involves a cash contract rather than a physicals contract. An EFS gives the market participants a chance to liquidate a swap position in an environment that is normally not very liquid.[1][2]
References
edit- ^ "CFTC GLOSSARY: A GUIDE TO THE LANGUAGE OF THE FUTURES INDUSTRY". US Commodity Futures Trading Commission.
- ^ "Exchange of Futures for Swaps". Traders Blog.
 | This finance-related article is a stub. You can help Wikipedia by expanding it. |