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Swaps & NDF
Fixing and reset process
Learning Outcome
5
Apply fixing and reset in swaps and NDFs.
4
Explain their impact on cash flows.
3
Understand reset dates and timing.
2
Identify key reference rates.
1
Define fixing and reset in derivatives.
What is the fixing and reset process?
In short: Fixing captures the number, and Reset puts that number to work in the contract.
Fixing: The official, recorded determination of a reference rate (for swaps) or a reference exchange rate (for NDFs) on a specific, pre-agreed date, sourced from a recognised benchmark administrator.
Reset: The process of applying the fixed value to the contract — updating the floating rate for the next accrual period in a swap, or determining the final settlement amount in an NDF.
Reference Rate Determination
The rate used in a swap is never picked randomly. It comes from a trusted body that follows a clear, fixed method. Some common reference rates used in the Indian market are:
These rates are worked out either by asking a group of banks what rate they are using, or by looking at the actual trades done that day. The rate is then published at the same fixed time every working day, so that every market participant is using the same number.
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Transition from Analogy to Technical Concept(Slide 5)
Core Concepts (Slide 6)
Core Concepts (Slide 7)
Core Concepts (.....Slide N-3)
Summary
5
Build strong branding
4
Use different marketing channels
3
Target the right audience
2
Create and communicate value
1
Understand customer needs
Choose cool, soft colors instead of vibrant colors
Max 5 Points for Summary & Min 2
Quiz
Which platform is mainly used for professional networking and B2B marketing ?
A. Facebook
B. Instagram
C. LinkedIn
D. Snapchat
Quiz-Answer
Which platform is mainly used for professional networking and B2B marketing ?
A. Facebook
B. Instagram
C. LinkedIn
D. Snapchat
Corporate Hedging & Derivatives Strategy - Fixing and reset process
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