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I work for a NY firm that is going to start trading stocks on the FTSE.

I was told that, in order to mitigate currency risk and reduce overseas tax exposure, I had to setup an ISDA Agreement (with one of the big investment banks) to engage in swaps.

Can anyone explain to me how the swaps mechanism works in a transaction like this? Also, is this the correct board for this question?

I have absolutely no idea what the transaction does for me or how it will work.

I appreciate any guidance.

Thanks,

Bill
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