For contracts for exchange, the value date is the day on which both contracting parties in the transaction exchange the currencies the subject of their agreement.
For a spot transactions the value date is two business banking days forward in the timezone of the bank providing the quotes which determine the spot value date. (The exception to this rule is when the spot day in the quoting centre coincides with a banking holiday in the country of the foreign currency. In this case the value date moves forward by one.
The onus is on the enquirer in the transaction to make sure his spot date is identical to the one provided by the respondent.
The forward month’s maturity must fall on the corresponding date in the relevant calendar month. If that one month date falls on a non-banking day in one of the centres then the operative date would be the next business day that is common to both centres.
The adjustment of the maturity for a particular month does not affect the other maturities that will continue to fall on the original corresponding date if they meet the open day requirement. If the last spot date falls on the last business day of a month, the forward dates will match this date by also falling due on the last business day.
Value date is also referred to as “maturity date”.Back to Glossary