OTC Foreign Exchange Derivatives Costs and Charges

With reference to OTC Foreign Exchange Derivatives  transactions, the cost applied to the client is the aggregate of the following components:

  • hedging cost, applied to the reference capital of the transaction expressed in the main currency (usually in euro. For currencies not quoted against the euro, the hedging cost is calculated on the main currency: for example, in the case of operations in USD/JPY the cost will be calculated on the amount expressed in USD; in the case of operations in GBP/USD on the amount expressed in GBP)
  • margin (so-called mark up), calculated on the reference capital of the transaction

The table below illustrates the maximum levels of the hedging cost and the margin applicable to an OTC Foreign Exchange Derivatives transaction.

Actual costs applied may differ from those illustrated.

CURRENCY MAXIMUM HEDGING COST
(%)
MAXIMUM MARGIN  (%) UPDATE DATE
Expiry Date ≤12 months Expiry Date > 12 months
OTC Foreign Exchange Derivatives
- EUR/USD
- EUR/GBP
- GBP/USD
- USD/CAD
- USD/CHF
- USD/JPY
0.40% 0.75% 1.50% per year 01/11/2021
- EUR/JPY
- EUR/CHF
- EUR/AUD
- EUR/NZD
- EUR/CAD
- EUR/NOK
- EUR/SEK
- EUR/HUF
- EUR/PLN
1.00% 1.90%
Other Currencies 1.60% 3.00%

The table below illustrates an example of calculation of the maximum costs applied by the Bank relating to a Forward Export and 1 year duration. The values shown in the table are based on a reference capital equal to EUR 1.000.000.  All costs are expressed on annual basis.

CURRENCY MAXIMUM HEDGING COST MAXIMUM MARGIN  MAXIMUM COST (€)
Cost (%) Cost (€) Margin (%) Margin (€)
OTC Foreign Exchange Derivatives
EUR/USD  0.40% 4.000 1.50% 15.000 19.000