Derivatives · glossary
The day the floating rate is read, two TARGET Settlement Days before the quarter starts. The loan calls the same day its Quotation Day, so both contracts read the same rate on the same morning. Rate Definitions: Fixing Day · Chapter 2 · Chapter 6
Explained in Chapter 2, The Swap, Line by Line, of Derivatives.
The Reset Date is the first day of the quarter. The Fixing Day is two working days earlier, when the rate is read. The working days are those of the euro's payment system, called TARGET. So each quarter's rate is known before the quarter starts and paid when it ends.Read Chapter 2, The Swap, Line by Line →
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