Early draw

Under the terms of a flexible forward contract, the purchasing party can activate early draws – which involve exchanging a portion of the total amount specified in the contract at the agreed exchange rate on one or more occasions – before the contract expires. A period in which the contract holder can activate early draws, […]

ECB exchange rates

The euro foreign exchange reference rates are the benchmark exchange rates published by the European Central Bank (ECB) and updated at around 3.00 pm Central European Time every working day. These rates are based on a regular daily concertation procedure between central banks across Europe and worldwide, which normally takes place at 2.15 pm CET. […]

Economic calendar

The economic calendar is a schedule of the most relevant economic events followed by investors. These events often have a significant impact on the financial markets and currency volatility. Foreign exchange markets are most affected by monetary and fiscal policy announcements, as well as by financial reports. A currency calendar allows investors to know what […]

Economic Exposure

Economic exposure is the term used to define the risk posed by foreign exchange rate fluctuations with adverse effects on a company’s financial stability. When a company invests or operates in more than one country, its cash flow and/or profit margins are affected by variations in the exchange rates applied to its main operational currency […]

Economic Exposure Management

Economic Exposure Management is the set of methods companies can use to handle economic risk, also known as operational risk. This is the potential impact of adverse exchange rate fluctuations on a company’s cash flow and competitive position. Unlike transaction and translation exposure, economic exposure is longer-term and therefore more difficult to forecast and hedge. […]

Economic value added (EVA)

Economic value added or EVA is a corporate accounting concept to define the real value created by a company in relation to the funds invested in it. This metric was created by Stern Stewart & Co. to help internal management to measure a company’s performance. The EVA, which can also be referred to as the […]

Effective hedging relationship

Hedging relationship effectiveness is a concept introduced by the hedge accounting standards, referring to the extent to which changes in the fair value of a hedged item are offset by opposite changes in the fair value of the financial derivative intended to hedge it. An effective hedging relationship is one of the main requirements of […]


El Reglamento sobre la Infraestructura de los Mercados Europeos o EMIR (por su acrónimo en inglés), que entró en vigor el 12 de febrero de 2014, es el marco regulatorio aprobado por la Autoridad Europea de Valores y Mercados (en adelante AEVM), organismo que supervisa la regulación financiera de la Unión Europea. El principal objetivo […]

Enterprise currency management (ECM)

Enterprise currency management is a software category that includes a wide range of solutions designed to automate the different aspects related to corporate foreign currency transactions, including the strategies to hedge the associated financial risk. More info FX Management Platform FX Management API Currency Accounts A growing number of ECM tools, the vast majority of […]

Equity funding

As a result of the sharp reduction in bank lending to companies after the Global Financial Crisis, equity crowdfunding has been the solution for many budding start-ups, providing much needed capital in exchange for equity. Equitynet and FundedByMe are but two examples.