Frequently Asked Questions on the Updated Report on Non-Deliverable Forwards Transactions

July 10, 2013BSP MEMORANDUM NO. M-2013-033TO:All BSP Supervised Financial Institutions   SUBJECT:Frequently Asked Questions on the Updated Report on Non-Deliverable Forwards Transactions 1. Are banks with no NDF transactions required to submit the report?  Consistent with the implementing guidelines on the submission of reports on derivatives transactions under Memorandum No. M-2008-009 dated 27 February 2008; the non-submission of NDF report shall be taken as a complete absence of any NDF activity undertaken by the Bank, i.e., no outstanding NDF transactions as of reporting date and no NDF transactions engaged in during the day.2. Does the report only require NDF transactions involving Philippine Peso? No. All NDF transactions should be reported including transactions between two currencies not involving the Philippine Peso.3. What is the currency contracted "Base" and "Settlement"? ECDaTI The currency contracted "Base" refers to the currency of the Notional Amount. While the currency contracted "Settlement" refers to the currency being hedged/protected against the fluctuations of another currency. For Example: You are hedging your Philippine Peso against the fluctuation of the USD. The "Base" is the...