View source for Exchange of futures for swaps

{{Short description | Futures-swap exchange transaction}}
An '''exchange of futures for swaps (EFS)''' is a transaction negotiated privately in which a [[futures contract]] for a [[Commodity|physical item]] is exchanged for a cash settled [[Swap (finance)|swap contract]]. It is similar to an [[Exchange of Futures for Physicals (EFP)|EFP]] except that it involves a cash contract rather than a physicals contract. An EFS gives the market participants a chance to [[Market liquidity|liquidate]] a swap position in an environment that is normally not very liquid.<ref>{{cite web
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| title =CFTC GLOSSARY: A GUIDE TO THE LANGUAGE OF THE FUTURES INDUSTRY
| work =US Commodity Futures Trading Commission
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| url =http://www.cftc.gov/consumerprotection/educationcenter/cftcglossary/glossary_e
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| title =Exchange of Futures for Swaps
| work =Traders Blog
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| url =http://www.traderslog.com/exchange-futures-swaps/
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==References==
{{Reflist}}
[[Category:Futures markets]]
[[Category:Derivatives (finance)]]
[[Category:Swaps (finance)]]
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