Glossary
Swaps are transactions between two parties with a commitment to an exchange of cash flows, usually on a six-monthly (£) or quarterly ($) basis. While there now are swaps based on a range of underlyings, such as equities, the most common form of swap is an interest rate swap (IRS), based on the yield curve. IRS represent the largest over the counter (i.e. non-listed) derivative market in the world.