Services for Corporate clients
Our sales team supports our corporate clients with many years of professional experience, a wide range of products and competitive conditions in the successful implementation of their exchange rate and interest rate risk management and investment strategies.
A major risk factor in the life of companies can be the unpredictability of the movement of foreign exchange rates, which can greatly impact the effectiveness and financial stability of companies. The following products can help you manage currency risks.
Spot deal
Buying and selling between two currencies, the settlement (value) date of which can be T (trade date), T+1 (first working day after the trade date), or T+2 (2nd working day after the trade date).
FX Forward transaction
Buying and selling foreign currency at a specified price and amount at the moment of making a trade for a future date.
Foreign exchange swaps
A currency exchange transaction is an agreement that involves the immediate sell/buy of a given currency and the forwards buy/sell of the same or different currency amounts at the same time.
Plain vanilla options
The buyer of the option acquires the right, while the seller of the option undertakes the obligation to buy or sell foreign currency at a predetermined exchange rate at a future date.
Exotic options
Exotic options differ from plain vanilla options in that they take effect or are terminated when a certain price level (barrier) is reached.
Option strategies
A strategy made up of multiple standalone, unique options transactions. Thanks to the numerous combinations that can be developed, the payout and risk profile of currency option strategies can be fully individualized.
Dual-currency structured investments
This allows you to attain returns in excess of
the deposit rates if you assume the risk that the invested capital may be converted
at a predetermined rate upon the maturity of the transaction.
In order to understand the operation, specifics and risks of products, it is
absolutely necessary to carefully study the relevant product information and
investor information.
A significant risk factor in the life of economic operators is the change in the interest rate environment, which can greatly affect their effectiveness, financial stability, as well as their profitability.
Interest Rate Swap - IRS
An agreement in which, over several future periods, for predetermined amounts, you can exchange your variable interest payment for a fixed interest payment or vice versa.
Cross-currency interest rate swap – CCIRS
An agreement in which you can exchange cash flows in two different currencies over several future periods in various ways.
Interest rate options
Interest rate options provide protection against adverse changes in the interest rate environment against a prepaid fee (premium).
Commodity transactions provide hedging opportunities for clients who want to reduce their risk arising from the rapidly changing prices of raw materials. Our products include energy carriers (crude oil, refined products, natural gas), precious metals (gold, aluminium, copper), as well as agricultural products (wheat, corn, rapeseed).
Commodity swap transactions
The price of a commodity purchase or sale due on a future date or period may be fixed by means of a commodity swap.
A commodity swap transaction is an agreement under which the two parties exchange their cash flows over a predetermined period of time. A party exchanges a fixed-rate liability or claim for one expressed in a variable price depending on the evolution of the exchange rate for the specified commodity product.
Our Global Markets services offers various investment products. From simple bank deposits and securities to more complex options structures, we offer investment solutions tailored to our clients’ needs and their risk profile.
Deposit
A bank deposit is a form of savings in which you commit a specific amount in your bank account to a specific maturity at a specified interest rate in exchange for interest payments at maturity. The bank repays the deposited capital including interest. It is typically a short-term, intra-year form of investment. During the term, the bank deposit can be withdrawn, and in this case the interest may be lost in part or in full.
Discount Treasury Bills
Discount Treasury bills are Hungarian government securities with a maturity of less than one year that do not pay interest, but – as their name suggests – are issued at a price lower than their nominal value, at a so-called discount rate. Discount Treasury bills pay back their owner the face value at maturity. They are typically issued publicly through an auction, and the face value of a single treasury bill is HUF 10,000.
In the primary market, it is usually marketed with a maturity of 3 or 12 months, respectively, while on the secondary market – so for our customers – a number of maturities are available within a year.
Government bonds
Government bonds are debt securities issued by the state to acquire funds. The government bond has a maturity of more than 1 year. In the event of buying a government bond, the buyer provides a loan to the state, with a predetermined amount and date. In return, the state pays a fixed interest on the investment at specific intervals. The invested amount is repaid by the state upon the maturity of the government bond.
A wide range of domestic and foreign government securities are available under competitive conditions.
Corporate bonds
Debt securities issued by companies of various sizes and risk ratings. The key difference compared to government securities is the identity of the issuer and the ensuing divergent risk profile: corporate bonds typically have a higher yield than government bond yields, which is associated with their credit risk rating.
OTP Global Markets clients can trade the bonds of a variety of domestic and foreign issuers, and with the help of our staff, find the securities that best suit their investment goals.
Both government and corporate bonds entail the following risks: credit, inflation, exchange rate and liquidity risks.
Dual-currency structured investments
This allows you to attain returns in excess of
the deposit rates if you assume the risk that the invested capital may be
converted at a predetermined rate upon the maturity of the transaction.
In order to understand the operation, specifics and risks of products, it is
absolutely necessary to carefully study the relevant product information and
investor information.
If your company has a Global Markets framework agreement, you have the option of trading on the online trading platform (OTP Trader)
- for spot currency conversion transactions, request an individual exchange rate from EUR 10,000 for a value date T (trade date), T+1 (first working day after the trade date) or T+2 (2nd working day after the trade date), and
- to enter into forward foreign exchange transactions, a forwards value date determined at the time of the transaction, which is a day after the second banking business day following the conclusion of the transaction.
Trades can be made on bank business days from 9:00 a.m. to 4:00 p.m. for value date T in most currency pairs, and from 9:00 a.m. to 5:00 p.m. for value dates T+1, T+2 or beyond T+2 business days.
Benefits
- real-time exchange rates
- fast access via the Internet
- easy operation, user-friendly interface
- simple, instant deal-making
- any amount can be entered over EUR 10,000
- instant confirmation through the OTP Trader interface
- storage of archive deals
- instant settlement of transactions
If you have an OTP Global Markets framework agreement, you can access the service here.
What do you need to be able to use OTP Trader?
- a valid Global Markets framework agreement for the service (with an indication of online foreign exchange transactions and/or forward foreign exchange transactions)
- foreign exchange accounts opened in the currencies to be traded in case of the intention to conduct spot foreign exchange transactions
- MIFID test, LEI code for contracts for forward foreign exchange transactions
How can you be our client?
If you want to be our client
Call our colleagues on plusz+36 1 298 4944
Choose the services of OTP Global Markets
If you would like to become a client of OTP Global Markets, feel free to contact us.
János Imrei
Head of Department
Edit Orsolya Kovács-Gyimóti
Deputy Head of Department
Borbála André
Sales
Nóra Gordos
Sales
István Fodor
Sales
Péter Huck
Sales
OTP Trader
Flóra Zsófia Margaritisz
Sales
OTP Trader
Nóra Simon
Sales
OTP Trader
Useful documents
These documents in English language to the person concerned
shall be for information purposes only. OTP Bank Plc shall fulfil its obligations imposed by the
legal regulations or requirement of supervisory authority by the documents in
Hungarian language.
In the
event of any discrepancy between the English language and Hungarian language
versions, the Hungarian language version shall prevail.
Information on the suspension of the market making obligation (available only in Hungarian)
Cross-Currency Interest rate swap
Dual currency structured investment
Forward deal in precious metals (gold and silver) transaction
Long-Term Investment Account T+3 FORWARD
Stock exchange spot transaction
Securities Lending Transaction
Senior Preferred Debt Securities Qualifying as Eligible Liabilities issued by OTP Bank plc
Notice on the uEMIR Notice se of LEI CODES
Disclosure of information pursuant to Article 11 (11) of the EMIR Regulation
Information for Clients on MiFID
Global Markets ex-ante cost transparency information (available only in Hungarian)
Systematic internaliser - quotes
Notice on the use of LEI CODES
Direct and indirect clearing services in respect of certain derivative transactions announcement
Notice - on the impacts of the pandemic emergency on the money and capital markets
Terms and conditions
Announcements
