Exchange of futures for swaps explained

An exchange of futures for swaps (EFS) is a transaction negotiated privately in which a futures contract for a physical item is exchanged for a cash settled swap contract. It is similar to an EFP except that it involves a cash contract rather than a physicals contract. An EFS gives the market participants a chance to liquidate a swap position in an environment that is normally not very liquid.^{[1] [2]}

Notes and References

1. Web site: CFTC GLOSSARY: A GUIDE TO THE LANGUAGE OF THE FUTURES INDUSTRY . US Commodity Futures Trading Commission .
2. Web site: Exchange of Futures for Swaps . Traders Blog .