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Spot FX
Spot Foreign Exchange transactions are done by Spot FX rates. Transactions can be delivered within two business days after the dealing date.
Forward FX
A Forward rate contract is an agreement to buy or sell a specified amount of a given asset on a specified future date, at a price set when the contract is entered into. Moreover, both buyer and seller are obligated to execute the contracted asset.
FX Swap
Customer can switch one currency asset with the bank for another currency, under the period of 1 year. Upon to a spot rate and a forward rate set in the contract, customer can swap one currency to another currency at the value date, and swap back at the maturity date respectively. The swap points will be calculated between the interest rate of the two currencies and added to the spot rate.
FX Option
(FX Option)
A currency option is a contract. It provides the buyer of the option has the right to buy or sell a particular asset for a limited time, at a specified price. The buyer has to pay the premium to the seller. In the contract, the seller/writer receiving the premium has the obligation to deliver the contracted asset when the buyer requires.
Forward Rate Agreement, FRA
A Forward rate contract is an agreement to buy or sell a specified amount of a given asset on a specified future date, at a price set when the contract is entered into. Moreover, both buyer and seller are obligated to execute the contracted asset.
Interest Rate Swap, IRS
One of tools to hedge interest risk from 1 year up to 3 years. Customer can switch its long-term asset to floating one ( or vis-à-vis ) to hedge the interest rate risk.
Cross Currency Swap, CCS
A tool for customers to hedge both risks from interest and foreign exchange transactions between two different currencies, with duration from 1 year up to 5 years. The principal can be physically delivered or non-physically delivered set when the contract is entered into. And the interest differential between the fixed and floating legs will be delivered periodically.
Interest Rate Option
One of tools to hedge interest risk. It provides the buyer of the option the right to borrow/place money at the contracted rate for a specified tenor. The seller has the obligation to deliver the borrowing/placement of asset to buyer set by the contract. The buyer has to pay the premium to the seller.
Short-term Bill / Bond Outright Buy, Reserve Repo
To fund short-term money, customers can issue or outright sell or do Reserve Repo a bill/bond by paying interest amount to get the cash for the specific tenor.
Short-term Bill / Bond Outright Sell, Repo
To reinvest short-term money, customers can outright buy or do Repo a bill/bond by receiving interest amount on the investment for the specific tenor.
Structure Products
A structure tool by deposit and option to enhance the income, the coupon will depend on the value of option.
Commodity Swap
A commodity swap is an agreement whereby a floating (or market or spot) price is exchanged for a fixed price over a specified period to hedge commodity price risk.
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Treasury
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