Exchange for Swap
Note: This section relates to wholesale trades when using versions prior to 7.17. For information on trading wholesale trades using version 7.17, refer to the section located here.
The Exchange for Swaps (EFS) trades allow trades to offset a specific OTC swap transaction for a similar commodity or a direct product of that commodity.
The exchange allows Exchange for Swap trades for the following products:
- London Commodity Products
- Robusta Coffee
- Raw Sugar
- White Sugar
- Feed Wheat
- Paris Commodity Products
- Rapeseed Oil
- Milling Wheat
- Malting Barley
- Skimmed Milk Powder
The list above serves as a general guideline to the products which the exchange supports for wholesale trades. However, the exchange may impose additional restrictions and/or change the list of available products.
Users should obtain and consult the most current information related to Wholesale trades directly from the exchange.
Considerations and Restrictions
The exchange requires that traders retain documentary evidence of the OTC contract.
This includes some of the following information:
- the fixed price or fixed price formula of the swap
- the floating price or floating price formula of the swap
- the start date of the swap
- the termination/maturity date
- the quantity of the swap position relating to the underlying commodity or the direct product of such commodity
- the referenced futures delivery month
For specific information related to Exchange for Swap trades, refer to the exchange documentation.
Submitting an Exchange for Swap Trade
When submitting an Exchange for Swap trade, you must select the desired contract from the Market Grid. Once selected, X_TRADER automatically populates the Series, Month, and AMR fields with the appropriate data from the Market Grid.
You must populate the Trader field with the value of the ITM of the Order Session that will route the order.
Older versions of X_TRADER may populate the Trader field with the user Trader ID. If present, you must replace this value with the correct ITM when entering a EFS trade.
You must populate the Price and Quantity fields to submit an Exchange for Swap trade. You must also populate the Account field.
To complete an Exchange for Swaps trade, you must populate the following fields:
- ISIN: Currently, TT Gateways require a value in the ISIN field. You may populate this with either the ISIN code (International Securities Identification Number) for the contract or simply enter 0 to continue without providing the ISIN.
- Cash Prc: Currently, TT Gateways require a value in the Cash Prc field. You may populate this with either the cash price of the underlying contract or simply enter 0 to continue without providing an actual cash price.