The Non-deliverable forward allows trading of foreign exchange rates or future parities. It is used as a foreign currency hedge where the party has the obligation to either make or take a foreign currency payment at some point in the future. .
Settlement occurs on the expiration date based on the difference between the register forward market rate and the market rate set as reference applied to notional operation amount.
BM&FBOVESPA allows for the registration of currency Non-deliverable forward with and without CCP.