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Exchange of futures for swaps

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(Redirected from Exchange of Futures for Swaps (EFS)) Futures-swap exchange transaction

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.

References

  1. "CFTC GLOSSARY: A GUIDE TO THE LANGUAGE OF THE FUTURES INDUSTRY". US Commodity Futures Trading Commission.
  2. "Exchange of Futures for Swaps". Traders Blog.
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