The term Exchange for Swap refers to a privately negotiated trade involving the exchange of a futures position for a corresponding Over the Counter swap. Exchange for Swap is one of several Exchange for Related Positions (EFRP) transactions.
An Exchange for Swap (EFS) is one of several Exchange for Related Positions (EFRP) trades authorized under Rule 538. An EFS involves the exchange of a futures position for an Over the Counter (OTC) swap involving the same underlying commodity. In order to conduct this transaction:
As is the case with other types of EFRPs, the transaction occurs as a privately negotiated exchange in positions. The other authorized EFRP trades include Exchange for Physical (EFP), Exchange of Options for Options (EOO), and Exchange for Risk (EFR).