Derivatives and other financial instruments

UBB AD Markets and Investment banking Department effects and offers to its clients: FX Swap  FX Forward  Other derivatives and structured products

Financial Instrument Types

FX Swap  
Swap operations is an exchange of amounts in one currency for another currency with the agreement for their reverse exchange on a certain future date at a pre-negotiated FX rate.
Swap allows for optimum current liquidity management in the currency, needed by the client, as well as hedging of foreign currency exposures, arising from the different currencies of your business’s cashflows.

FX Forward
FX Forward is an agreement between UBB and a client, pursuant to which currencies are purchased and sold at prices agreed today, but with delivery on a certain future date at a so-called forward rate. This is a legally binding agreement for both UBB and its client - without the need to transfer funds prior to the agreed future date.

Advantages:
Eliminates the uncertainty resulting from exchange rates’ fluctuations;
Facilitates precise budgeting; 
Enables the company to concentrate on its core business activity and not on day-to-day fluctuations of exchange rates;
No additional costs’ burden on the client.

Shortcomings:
FX forwards involve fixed commitments on the part of clients, excluding the possibility to generate FX gains in case on the value date the market rate turns out more favourable than the agreed forward rate.

Other derivatives and structured products  

Other
Markets and Investment Banking Department provides to its clients a free-of-charge daily bulletin with updated information about the local and international money, FX and capital markets. The bulletin is available each business day
at www.ubb.bg/treasury_bulletin

UBB AD reserves itself the right to amend the terms of the above products and services in accordance with the market conditions, as well as to negotiate other terms on any specific transaction.

Parameters

The minimum amount for the above deals and products varies depending on the instrument.
Please, inform yourself of EMIR, the new European regulatory framework, through Useful Documents Section.

Contact us

FX swap - For additional details, please, contact us at +35928112440, +35928112442 and +35928112439, +35928112445 or at stefanov_va at ubb.bg, mays_k at ubb.bg, krasteva_b at ubb.bg.

FX forward - For additional details, please, contact us at +35928112439, +35928112442, +35928112445, +35928112440 or at  krasteva_b@ubb.bg, mays_k at ubb.bg, stefanov_va at ubb.bg.

Other derivatives and structured products  - To discuss the multiple options for hedging, speculation and/or finding the appropriate solution for the financial needs of your business, please, contact us at  +35928112442, +35928112439, +35928112445 and +35928112440 or at mays_k at ubb.bg, krasteva_b at ubb.bg and stefanov_va at ubb.bg.

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