More NDF changes could follow Argentine chaos


The exchange rate divergence language was removed from the Argentina contract in October 2019

Currency derivatives contracts in Latin America could be overhauled as Emta, a New York-based association for emerging markets trading, seeks to head off a repeat of the contract chaos that left Argentina’s non-deliverable forwards (NDFs) market frozen in September 2019 and revealed a split among market participants.

In Argentina, confusion reigned after five Emta members, including Goldman Sachs and Pimco, argued the imposition of capital controls had caused the rate used to settle peso trades

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