Summary

Use FX Web to perform Swaps that are not connected to other standing contracts.

• To perform a swap with compensation for an existing forward contract, contact your US Bank foreign exchange dealer.
• Typically, swaps on FX Web are even swaps that borrow, lend, or provide an alternative to a forward contract (hedging on uncertain delivery date).

Steps        Terms and Labels        Messages

Steps

1. Click Swap on the Main Menu to open the Trade Entry:Swap page.
2. Select the currencies you want to buy and sell for the Near Date only.
   • Type the three-character currency code in the text box next to the flag icon. OR
   • Click the flag icon to open a table of available currencies to buy and/or sell. Find and select the currency, and then click OK to return to the Trade Entry page.
3. Type the currency amount that you want to swap in the amount box of the Near group.
4. Click in Near Value Date and type the date on which you want to buy or sell the first transaction of the swap.
   Use the DDMMYY format. FX Web inserts slashes automatically.
   
5. Click in Far Value Date and type the date on which you want to buy or sell back the currency you bought or sold at the Near Date.
   
6. Do one of the following to commit the trade.
   • To see the exchange rates before you complete the trade, click Get Rate. After the rates appear, execute the trade by clicking Accept.
   • To complete the trade without seeing the rates first, click Trade at Market.
     A message appears to confirm the trade.
     THIS IS YOUR ONLY OPPORTUNITY TO CANCEL THE TRADE ONLINE.
     
7. Click OK or Cancel to commit or cancel the swap transaction. If you click OK, a confirmation page appears.
8. Click Acknowledge.
   • If you are authorized to enter settlement instructions, two sets of Payment and Receipt buttons appear to select and define settlement instructions.
9. Click Near Payment on the summary page to display the Details for Trade page.
10. Select the Method and Set, then verify or edit the instructions.
11. Click Insert, and then OK at the confirm message.
    The Delivery Details page displays three additional buttons: Complete, Update, and Delete.
12. Optionally click Update and edit or Delete and remove the instructions, then click OK.
13. Finalize the instructions by clicking Complete, and then OK.
14. Repeat steps 10-13 for settlement instructions for Near Receipt, Far Payment, and Far Receipt.
15. Click Back or Menu to continue with Swaps or other FX Web tasks.

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Terms and Labels

Term or Field	Description
Near \ Far	Near refers to the initial trade in a swap and Far refers to the forward trade that "swaps" the previous transaction. The customer buys $1 million CAD on the near date and sells $1 million CAD on the far date.
Even Swap	Most swaps are set up to buy and sell equal amounts of currency.
Uneven Swap	When swaps are used to hedge an investment for a fixed return (such as with Treasury bills), banks may oblige a customer by buying or selling more currency at the far date than was bought or sold at the near date.
Uncertain Delivery Date	One reason that a customer swaps currency is as an alternative to a forward option contract when a delivery date in the future is prone to variation. A customer may have a forward contract that settles on May 1. If the vendor delivers on April 15, the customer may swap currency to get the foreign currency it had planned to receive on May 1 and then swap back on that contract date.

Common Messages with Suggestions

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