Foreign Exchange | POF | PROOF OF FUNDS via SWIFT

FOREIGN EXCHANGE

FORWARD PARITY FOREIGN EXCHASNGE

Target Customers
It is applicable to globally skilled that need to avert exchange rate fluctuation risk for the purpose of hedging, have frequent and regular foreign exchange trading demand in the future, and intend to conduct forward transactions to manage exchange rate risk.

Functional Features
People in international settings can lock future multiple exchange settlement or purchase prices in a one-off way through forward parity foreign exchange, thereby averting exchange rate risk. The transaction structure is clear, eliminating complicated operation needed for multiple forward foreign exchanges with different exercise prices. All paying accounts, delivery date and amount of forward parity foreign exchange can be customized.

Features and Advantages

  • Competitive product quotation: The forward foreign exchange market is relatively developed, market liquidity is relatively high and various products are available. In addition, our AGENCY BANKs can directly inquire in the market and conduct hedging. With professional and experienced traders as well as product design and quantitative analysis teams, flexible pricing mechanism and strong competitiveness among peers, we can provide the more superior prices.
     

  • Customized design: The product is flexible to meet customers’ different needs based on legal issues of concern, product period, delivery frequency, delivery amount and other elements, and lock foreign exchange cost for them.
     

  • Continuous dynamic management: we can regularly provide customers with evaluation reports on forward parity foreign exchange transaction, and provide subsequent dynamic management services according to the market quotations and their demands.


Application Process

  • Customer assessment: We conducts due diligence on customers to evaluate the customers comprehensively based on the business nature, financial derivative trading experience and internal management controls, in order to recommend suitable products with different judicial districts for customers.
     

  • Signing of the master agreement: To apply for the forward parity foreign exchange business, the customer must sign related business agreements with us and our Agency Bank.
     

  • Implementation of guarantee measures: the customer needs to pay security deposit or hand over collateral or may apply for occupying special credit limit of derivative transaction from our Agency Banks or the major banks worldwide.
     

  • Risk disclosure and signing of confirmation: We provides risk disclosure for customers, covering cash flow analysis, market value and influencing factors, and potential market value losses. The customer needs to confirm risk warning contents in writing and sign the confirmation.


Risk Prompt
Risks that the customer may face: the exchange rate on the delivery day is inferior to spot exchange rate; market capitalization is assessed to make profits or suffer losses; the worse market capitalization assessment result requires additional security deposit; and reversed squaring my incur additional fees. Customers shall completely understand every article in texts and make independent decision based on their own judgment. Customers shall take into account force majeure and possible accidents, losses arising from which have nothing to do with us.

Notes
The customer has the lower limit of USD 5 million or equivalent and the shortest term of 3 months (delivered once every month).

INCREMENTAL FOREIGN EXCHANGE INTEREST RATE SWAP

Target Customers
The business is applicable to individual and corporate customers who are from emerging market countries with the purpose of hedging and avoiding risks in interest rate fluctuation, especially those holding medium- and long-term foreign exchange loans with floating interest rates and wishing to reduce fixed interest rate expenditure at an early stage.

Functional Features
The product has clear and simple structure and flexible transaction elements. Customers pays low fixed interest rate at the early stage, which increases progressively each issue thereafter. In addition, there is no need to pay fees at an early stage. By using this product, customers can circumvent the market risk of interest rate fluctuations and fix the financing costs of enterprises. At the same time, the customers may, based on market prices for interest rate swaps of different terms, select the most favorable loan interest payment structure to reduce corporate financing costs.

Features and Advantages

  • Competitive product quotation: We can offer better product quotation thanks to its professional and experienced traders and product design and quantitative analysis teams, flexible pricing mechanism and strong competitiveness.
     

  • Customized design: the product is flexible to meet customers’ different needs through combination of product period and structure.
     

  • Continuous dynamic management: Our Agency Banks can regularly provide customers with transaction evaluation reports, and provide subsequent dynamic management services according to the market quotations and their demands.


Application Process

  • Customer assessment: We carries out due diligence of the customer, comprehensively assesses it based on its business nature, financial derivative trading experience and internal management & control, and recommends suitable product varieties to it.
     

  • Signing of the master agreement: To apply for the incremental foreign exchange interest rate swap business, customers must sign related business agreements with Our Agency Banks.
     

  • Implementing guarantee measures: customers need to pay security deposit or hand over collateral or may occupy special credit limit of derivative transaction.
     

  • Risk disclosure and confirmation signing: We gives risk warning to customers in terms of cash flow analysis, market capitalization, influence factors and potential market capitalization loss. Customers needs to confirm risk warning contents in writing and sign the confirmation.


Risk Prompt
Customers may face risks of negative net cash flow due to possible changes in market interest rate, loss or profit in market value assessment, additional security deposit being required in cases of negative results of market value evaluation, additional cost being incurred from squaring. Customers shall completely understand every article in the agreement and make independent decision based on their own judgment. Customers shall take into account force majeure and possible accidents, losses arising from which have nothing to do with us.

Notes
The business has the lower limit of USD 10 million or equivalent and the shortest term of 12 months (delivery once every month).

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