International Foreign Exchange Master Agreement - IFEMA


DEFINITION of 'International Foreign Exchange Master Agreement - IFEMA'

An agreement set forth by the Foreign Exchange Committee that reflects the best practices for transactions in the foreign exchange market. IFEMA was published in 1997 and sponsored by the British Bankers Association, Canadian Foreign Exchange Committee and the Tokyo Foreign Exchange Market Practices Committee.

BREAKING DOWN 'International Foreign Exchange Master Agreement - IFEMA'

IFEMA is a standardized agreement between two parties for the exchange of currency. The agreement covers all facets of the transaction, providing detailed practices on the creation and settlement for a forex contract. In addition to the terms of a contract, IFEMA explains the consequences of default, force majeure or other unforeseen circumstances.

  1. Default

    1. The failure to promptly pay interest or principal when due. ...
  2. Settlement Date

    1. The date by which an executed security trade must be settled. ...
  3. Forex Futures

    An exchange-traded contract to buy or sell a specified amount ...
  4. Force Majeure

    A French term literally translated as "greater force", this clause ...
  5. Futures Contract

    A contractual agreement, generally made on the trading floor ...
  6. Forex - FX

    The market in which currencies are traded. The forex market is ...
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