Contados y Seguros de Cambio

  • With this operation the client acquires the obligation to buy or sell a currency from or to the bank

    at a specific price and on a specific date established at the time of contracting

  • The exchange insurance is a product MIFID qualifier as a complex. It is compulsory for all related documentation to be completed before contracting can occur. It is subject to the regulations EMIR.

    Advantages of Spot Rate and Forex Insurances

    With an operation of spot or with a Forex insurance the customer acquires the obligation to buy or sell a currency from or to the bank at a specific price and on a specific date established at the time of contracting.

    One cash transaction is made to apply to operations that are settled with a dated value of two market business days. Exceptionally, and only in some currencies, you will be able to contract zero value operations on one market working day.

    You can contract it directly through the Oficina Internet Empresas (OIE).

    A Forex insurance, in contrast, it is made to apply to operations whose maturity date is more than two market business days; it is a very flexible product as it allows advances (use before the contracted maturity) and extensions (extension of the contracted maturity). In both cases the original price is recalculated taking into account the term of the corresponding operation.

    To contract exchange insurance you first must have a risk facility activated (Comex Facility or Derivatives Facility), which you can contract via OIE.

    Seven days before expiration of the exchange insurance you will receive a Comex Notification to remind you about the expiration, and to give you the option of applying it or associating it with any international payment or collection operation.

    On the day of the maturity of the operation the quoted price of the currency may be more favourable than that contracted.

    In the event of non-fulfilment of the forex insurance (failure to apply it to a charge/payment operation), a settlement of the differences will be made, charging or paying into your account the difference between the contracted price and the price of the currency on the day of the non-compliance, in addition to a non-compliance fee.

    Forex insurance is an MIFID product classified as complex, an essential requisite for its contracting being the completion of all the related documentation (Classification, Generic Pre-contractual Information, Specific Pre-contractual Information and Appropriateness Test, if the client is classified as a retailer).

    As it is an MiFID product classified as complex, it is not suitable for all customers. Likewise, the forex insurance is subject to the EMIR regulations.

    If you would like to know more about this product, see this Currency contracting presentation in the Oficina Internet Empresas (PDF, 1.33 MB)