Foreign exchange spot

<h2 id="settlement-date">Settlement date</h2>
<p>The standard settlement timeframe for foreign exchange spot transactions is <a href="/facts/T%2B2/Iwo8xTr2">T+2</a>; i.e., two business days from the trade date. Notable exceptions are <a href="/facts/United_States_dollar/naEEDUhC">USD</a>/<a href="/facts/Canadian_dollar/NMSsTyIE">CAD</a>, <a href="/facts/United_States_dollar/naEEDUhC">USD</a>/<a href="/facts/Turkish_lira/PXqvK4BV">TRY</a>, <a href="/facts/United_States_dollar/naEEDUhC">USD</a>/<a href="/facts/Philippine_peso/02Lfe6RM">PHP</a>, <a href="/facts/United_States_dollar/naEEDUhC">USD</a>/<a href="/facts/Russian_ruble/mzupvnyt">RUB</a>, and offshore <a href="/facts/United_States_dollar/naEEDUhC">USD</a>/<a href="/facts/Kazakhstani_tenge/3HPX0whl">KZT</a> and offshore <a href="/facts/United_States_dollar/naEEDUhC">USD</a>/<a href="/facts/Pakistani_rupee/RG3wtEyd">PKR</a> <a href="/facts/Currency_pair/FPypejLT">currency pairs</a>, which settle at T+1. <a href="/facts/United_States_dollar/naEEDUhC">USD</a>/<a href="/facts/Colombian_peso/U7GraWuK">COP</a> settles T+0.
<a class="footnote-ref" id="fnref:3" href="#fn:3"><sup>3</sup></a> Majority of SME FX payments are made through Spot FX, partially because businesses aren't aware of alternatives.<a class="footnote-ref" id="fnref:4" href="#fn:4"><sup>4</sup></a>
</p>
<h2 id="execution-methods">Execution methods</h2>
<p>Common methods of executing a spot foreign exchange transaction include the following:<a class="footnote-ref" id="fnref:5" href="#fn:5"><sup>5</sup></a>
</p>
<ul><li><i>Direct</i> – Executed between two parties directly and not intermediated by a third party. For example, a transaction executed via direct telephone communication or direct electronic dealing systems such as <a href="/facts/Thomson_Reuters/GPIlfqa2">Reuters</a> Conversational Dealing</li>
<li><i>Electronic broking systems</i> – Executed via automated <a href="/facts/Order_matching_system/PfFQAAqG">order matching system</a> for foreign exchange dealers. Examples of such systems are <a href="/facts/Electronic_Broking_Services/sjuSQI5Q">EBS</a> and <a href="/facts/D2000-2/YvJ8WM5b">Reuters Matching 2000/2</a></li>
<li><i>Electronic trading systems</i> – Executed via a single-bank <a href="/facts/Proprietary_software/9zcskxYL">proprietary</a> platform or a multibank dealing system. These systems are generally geared towards customers. Examples of multibank systems include Fortex Technologies, Inc., 360TGTX, FXSpotStream LLC, Integral, <a href="/facts/FXall/u2G0HaSC">FXall</a>, HotSpotFX, Currenex, <a href="/facts/LMAX_Exchange/UeKDczTm">LMAX Exchange</a>, FX Connect, Prime Trade, Globalink, Seamless FX, and <a href="/facts/ESpeed/QpW80jnH">eSpeed</a></li>
<li><i>Voice broker</i> – Executed via telephone with a foreign exchange voice <a href="/facts/Broker/o3Fm1eIP">broker</a></li></ul>
<h2 id="see-also">See also</h2>
<ul><li><a href="/facts/Foreign_exchange_market/NHnHPMhE">Foreign exchange market</a></li>
<li><a href="/facts/Foreign_exchange_option/lyh4JV2p">Foreign exchange option</a></li>
<li><a href="/facts/Foreign_exchange_derivative/wcymVS2V">Foreign exchange derivative</a></li>
<li><a href="/facts/Financial_instruments/2d93t6Ya">Financial instruments</a></li>
<li><a href="/facts/Foreign_exchange_aggregator/IJ1tsCUk">Foreign exchange aggregator</a></li></ul>

<h2 id="references">References</h2>

<ol>
<li id="fn:1"><p>"Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity in 2010" (PDF). Bank for International Settlements. Retrieved 17 September 2011. <a href="http://www.bis.org/publ/rpfxf10t.pdf" target="_blank">http://www.bis.org/publ/rpfxf10t.pdf</a> <a href="#fnref:1" class="footnote-back-ref">↩</a></p></li>
<li id="fn:2"><p>"Triennial Central Bank Survey Global foreign exchange market turnover in 2013" (PDF). Bank for International Settlements. Retrieved 30 September 2013. <a href="http://www.bis.org/publ/rpfx13fx.pdf" target="_blank">http://www.bis.org/publ/rpfx13fx.pdf</a> <a href="#fnref:2" class="footnote-back-ref">↩</a></p></li>
<li id="fn:3"><p>"Archived copy" (PDF). Archived from the original (PDF) on 2017-03-13. Retrieved 2018-07-10.{{cite web}}:  CS1 maint: archived copy as title (link) <a href="https://web.archive.org/web/20170313145206/https://www.hsbcnet.com/gbm/attachments/rise-of-the-rmb/currency-guide-2012.pdf?WT.ac=CIBM_gbm_pro_rmbrise_pbx01_On" target="_blank">https://web.archive.org/web/20170313145206/https://www.hsbcnet.com/gbm/attachments/rise-of-the-rmb/currency-guide-2012.pdf?WT.ac=CIBM_gbm_pro_rmbrise_pbx01_On</a> <a href="#fnref:3" class="footnote-back-ref">↩</a></p></li>
<li id="fn:4"><p>"Spot FX transactions for Payments or Hedged Transaction?". Retrieved 14 December 2019. <a href="https://moneytransfercomparison.com/spot-fx-transactions/" target="_blank">https://moneytransfercomparison.com/spot-fx-transactions/</a> <a href="#fnref:4" class="footnote-back-ref">↩</a></p></li>
<li id="fn:5"><p>"Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity in 2010" (PDF). Bank for International Settlements. Retrieved 17 September 2011. <a href="http://www.bis.org/publ/rpfxf10t.pdf" target="_blank">http://www.bis.org/publ/rpfxf10t.pdf</a> <a href="#fnref:5" class="footnote-back-ref">↩</a></p></li>
</ol>

Foreign exchange spot open-in-new

Foreign exchange spot