Seeing red over blue-chip swap in Argentina’s NDF fiasco

Emta protocol salve aside, peso settlement rate snafu is a warning for emerging market FX derivatives

In markets as in politics, it’s not always the simple majority that carries the day – leaving at least a sizeable minority feeling aggrieved. Such was the outcome of a settlement issue for non-deliverable forwards (NDFs) in the Argentine peso last October. The market-wide dispute over NDF settlement rates, resolved by the New York-based Emerging Markets Traders Association (Emta), may yet give way to fresh challenges. And it should serve as a warning for foreign exchange derivatives dealers in