| |
Dual Currency Deposits |
| |
|
| ü |
Dual Currency Deposits (DCDs) are structured deposits on currencies or precious metals. They provide a fixed rate of interest above what is paid by a traditional money market Deposit; tenor is usually two weeks to three months and DCDs can be structured on any currency pair. |
| ü |
DCD’s provide interesting cash management alternatives. However, these Structured Deposits are not Capital Guaranteed, considering that at maturity the investor may be paid in the Alternative Currency; the High Interest rate is, however, guaranteed. |
| |
Margin Trading |
| |
|
| ü |
Margin trading on FX enables clients to trade in currencies with limits up to 5 times their original deposit. |
| ü |
Clients can choose to obtain margin-trading facilities for the purpose of currency speculation or for benefiting from interest rate differentials. |
Foreign Exchange and Interest Rate Derivatives
| |
FX Derivatives |
| |
|
| ü |
FX Derivatives are used to hedge clients’ currency exposure. These instruments provide clients with protection against adverse movements in foreign exchange rates and at the same time provide some flexibility, allowing clients to benefit in case of favourable movements in the FX markets. FX Option structures can be structured with zero upfront premium payment by the Clients and are tailor-made solutions in line with the client’s needs, views and objectives. Tenors for such products range typically from 3 months to 1 to 2 years and can be structured on major currency pairs, including Euro/USD, USD/JPY, GBP/USD and USD/CHF. |
Interest Rate Derivatives
| ü |
Interest Rate Derivatives are used to hedge clients’ interest rate exposure. Clients can enter into interest rate swaps, caps, or floors. These instruments provide clients with protection against adverse movements in interest rates and do provide flexibility to lock-in worst case rates and/or benefit from favourable movements in the interest rate markets. Tenors for such products range typically from 3 to 7 years and can be structured on major currencies including US Dollars, Euros and Sterling Pound. |
|
|