Page 74 - PRIAA Glossary

FOLLOWING BUSINESS DAY CONVENTION
A business day convention where payment days that fall on a bad business day roll forward to the next good business day, regardless of whether or not it falls in the next calendar month.
FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA)
[US CODE & REGULATIONS]
An act which was signed into law in 2010 to prevent US persons from using foreign accounts and foreign entities to evade US tax. FATCA requires financial and non-financial institutes to withhold 30% of the payment unless it is eligible for exemption.
FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA) [US-UK & US-DENMARK INTERGOVERNMENTAL AGREEMENTS]
An agreement between the United States and a partner country which enables the partner country to collect the information required by FATCA from an foreign financial institution (FFI) and share the information with the United States, thereby allowing FFIs in the partner country to not enter into FFI agreements with the IRS and eliminate FATCA withholding on payments to FFIs in these jurisdictions.
FOREIGN EXCHANGE MARKET (Forex, FX)
A global distributed market for the trading of currencies.
It provides the platform through which the money of one country is exchanged for that of another country and the rate
of exchange between currencies is determined. The major players in the Forex Market are banks, commercial companies, central banks, investment management firms, hedge funds and retail forex brokers and investors. The foreign exchange market assists international trade and investment by enabling currency conversion. The foreign exchange market is unique in terms of its huge trading volume representing the largest asset class in the world leading to high liquidity. Also commonly known as the “currency market”.
FORWARD
An over-the-counter (OTC) contract involving the sale by one party and the purchase by another party of a predefined amount of an underlying, at a predefined price and a predefined future date.
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