Foreign Exchange Agreement Template for Germany

The Foreign Exchange Agreement is essential for parties engaging in currency exchange transactions under German law. It is particularly relevant when establishing ongoing trading relationships involving foreign exchange transactions, whether spot, forward, or swap arrangements. The document addresses requirements under German banking regulations (KWG), civil law (BGB), and EU financial regulations, including MiFID II and EMIR. It typically includes comprehensive provisions for trade execution, settlement, regulatory compliance, risk management, and default scenarios. This agreement is crucial for financial institutions, corporations, and other entities conducting foreign exchange operations in or from Germany, ensuring their trading relationship complies with all applicable German and EU regulatory requirements.

1. Parties: Identification of the contracting parties with full legal names and addresses

2. Background: Context of the agreement and brief description of the parties' intentions

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and rules of interpretation

4. Scope of Agreement: Description of FX transactions covered and general trading relationship

5. Trading Arrangements: Procedures for entering into FX transactions, confirmation process, and execution methods

6. Settlement and Payments: Terms for settling transactions, payment mechanisms, and currency delivery

7. Representations and Warranties: Standard and specific representations made by each party

8. Covenants: Ongoing obligations of the parties throughout the agreement term

9. Events of Default: Circumstances constituting default and consequences

10. Termination: Conditions and procedures for terminating the agreement and individual transactions

11. Netting and Set-off: Provisions for payment netting and close-out netting arrangements

12. Regulatory Compliance: Compliance with German and EU financial regulations, including reporting obligations

13. Governing Law and Jurisdiction: German law as governing law and jurisdiction provisions

14. Notices: Communication methods and contact details for notices

15. Miscellaneous: Standard boilerplate provisions including amendments, assignments, and severability