Classification of delivery date of spot foreign exchange transactions The date when both parties reach a foreign exchange agreement is called the trading day.
After the transaction is concluded, the behavior that both parties transfer funds and actually receive and pay the corresponding monetary amount is called delivery, and this day is called deliverydate, also known as maturitydate.
This day is also the date when the monetary funds of both parties are transferred to the designated account and interest begins to accrue, so it is also called the value date.
The delivery date of spot foreign exchange transactions depends on different dates, including the following three situations.
(1) Valsp refers to the delivery method of T+2, that is, the second business day after the transaction.
At present, most spot foreign exchange transactions adopt this method, whether it is the buying and selling price quoted by banks or the quotations appearing in financial newspapers and periodicals, T+2 delivery method is adopted.
(2) Valtom, also known as cash delivery, refers to the delivery method of T+ 1 in spot foreign exchange transactions, that is, the first business day after the transaction.
Some countries or regions adopt this delivery method because of the time difference.
For example, in China and Hong Kong foreign exchange market, the delivery date of spot transactions between Hong Kong dollar and Japanese yen, Singapore dollar and Australian dollar is the day after the transaction; The spot transaction of USD against Canadian dollar and Mexican peso is also the delivery date of the day after the transaction. Because these countries or regions basically belong to the same time zone, it is possible to get the account the next day after the transaction.
(3) VALTOD refers to the T+O delivery method of spot foreign exchange transactions, that is, the delivery is made on the day of the transaction.
Sporadic spot foreign exchange transactions between banks and local customers can generally realize the collection and payment of foreign exchange on the same day. For example, China residents can exchange euros into Japanese yen at the Bank of China, which can be instantly exchanged and settled.