What does EFP stand for in finance?
An exchange of futures for physical (EFP) is a private agreement between two parties to trade a futures position for the basket of underlying actuals.
What is an EFP rate?
The EFP is a privately-negotiated transaction between the two parties to the trade, where the consummated transaction must be reported to the Exchange. As such, the pricing of the EFP is quoted in terms of the basis between the price of the futures contract and the level of the underlying index.
What is EFP ASX?
The exchange for physicals (EFP) facility is an off-market trading mechanism that enables customers to swap futures and options exposure for an offsetting physical position. Customers are afforded the benefits of an ASX off-market trading facility, such as pre-trade price and execution certainty.
What is EFP delivery?
The Exchange of Futures for Physical (EFP) is an alternative mechanism that is used to price physical crude oil. I An EFP is one avenue of achieving physical delivery which means that traders can take delivery of WTI as they do on other exchanges where WTI is traded on a physical basis.
How is EFP calculated?
Exchange For Physical (EFP) allows traders to switch Gold futures positions to and from physical, unallocated accounts….EFP is calculated as a function of:
- The number of days between spot and futures delivery.
- Metals and currency interest rates.
- Transportation costs.
- Refining costs for good delivery of standard bars.
What does ESP stand for?
ESP stands for electronic stability program, which is one of the most widely used names for a safety feature that’s also marketed under other names, most of which include the word “stability,” such as electronic stability control, dynamic stability control, vehicle stability assist, vehicle stability control and …
What is EFP bomb?
Dubbed “superbombs” because of their lethality, an Explosively Formed Penetrator (EFP) is a type of improvised explosive device (IED) that has had enormous effects on the U.S. Military in war zones. EFPs are self-forging warheads designed to effectively penetrate armor and fire in a way similar to cannons.
What is the significance of the EFP in trade?
The EFP trade affords market participants the opportunity to separate pricing from supply by exchanging their physical price exposure for a futures price exposure. Hence, an EFP allows the exchange of a commodities position for a futures position.
What is gold EFP?
Exchange For Physical (EFP) allows traders to switch Gold futures positions to and from physical, unallocated accounts. Quoted as dollar basis, relative the current futures prices, EFP is a key component in pricing OTC spot gold.
What does ESP stand for in business?
ESP stands for Email Service Provider. ESP or Email Service Provider is a company that offers email marketing services.
What does ESP stand for in accounting?
An employee savings plan (ESP) is a pooled investment account provided by an employer that allows employees to set aside a portion of their pre-tax wages for retirement savings or other long-term goals, such as paying for college tuition or purchasing a home.
How does a shaped charge work?
A shaped charge is a concave metal hemisphere or cone (known as a liner) backed by a high explosive, all in a steel or aluminum casing. A detonator is activated to initiate the explosive material to generate a detonation wave. This wave collapses the liner and a high velocity metallic jet is formed.
What’s the difference between an EFP and an EFS?
This transaction involves a privately negotiated exchange of a futures position for a corresponding position in the underlying physical. An EFP is similar to an EFS, except that it involves a physical contract rather than a cash swap contract.
Who are the parties to the EFP transaction?
One party is the buyer of futures and the seller of the physical shares, and the other party takes the opposite position. The EFP is a privately-negotiated transaction between the two parties to the trade, where the consummated transaction must be reported to the Exchange.
How does an EFP work in the futures market?
Because both sides of the trade track the same benchmark, an EFP is market-neutral. As such, the pricing of the EFP is quoted in terms of the basis between the price of the futures contract and the level of the underlying index.
How does exchange for Physical ( EFP ) transactions work?
EFP transactions allow investors to convert between futures and either ETFs or baskets of the underlying index constituent stocks, without exposure to intraday market execution.