This message is exchanged by or on behalf of the institutions or corporates, party A and party B, who have agreed to a forward rate agreement (FRA).
The confirmed transaction is covered by an ISDA (International Swaps and Derivatives Association), Deutscher Rahmenvertrag für Finanztermingeschäfte, FRABBA (British Bankers' Association) or AFB (Association Française de Banques) Master Agreement. These agreements are either signed or under negotiation.
A money broker may also send this message to the two parties (party A and party B) for which he arranged the deal.
If there are two money brokers involved in arranging a deal between party A and party B, this message is also exchanged between these money brokers.
The message is used to confirm/notify the details of:
a new contract between the parties
an amendment to a previously agreed contract
the cancellation of a confirmation.
It may also be used to report the details of an agreement to a trade repository.
