First, the payments received by the bank under the hedge contract were not causally connected with the payments of the bank under the swap contract.

In his approach, governments that find they are caught in unsuccessful swap contracts would be required to show the failures on their balance sheets.

They would report a liability in the amount that it would cost to buy out of the swap contract.

Under a 25-year swap contract signed between the two countries in August 2004, the new pipeline will supply the region with Iranian natural gas.

Pimco runs an index fund that enters into swap contracts, which are based on the price of a commodity at some future date.

However, the actual "cost" of the swap contract would be some small fraction of the minimal $4.5 million in interest payments.

The Commission determines which swaps are subject to mandatory clearing and whether a derivatives exchange is eligible to clear a certain type of swap contract.

Enron, which used a "mark-to-market" accounting method, claimed a $500 million gain on the swap contracts in its 2000 annual report.

Enron Steel (financial swap contracts and spot pricing for the steel industry).

In a swap contract, you trade with your counterpart (a company/institution/individual) and take risk on their capacity to pay you any amount that may be due at settlement.