Banking Day:
For
exchange contracts it is the day on which the two contracting parties exchange
the currencies which are being bought or sold.. For a spot transaction it is
two business banking days forward in the country of the bank providing
quotations which determine the spot value date. The only exception to this
general rule is the spot day in the quoting centre coinciding with a banking
holiday in the country(ies) of the foreign currency(ies). The value date then
moves forward a day. The enquirer is the party who must make sure that his spot
day coincides with the one applied by the respondent. The forward months
maturity must fall on the corresponding date in the relevant calendar month. If
the one month date falls on a non-banking day in one of the centers then the
operative date would be the next business day that is common. The adjustment of
the maturity for a particular month does not affect the other maturities that
will continue to fall on the original corresponding date if they meet the open
day requirement. If the last spot date falls on the last business day of a
month, the forward dates will match this date by also falling due on the last
business day. Also referred to as Maturity Date.
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