UNSPSC 64111701: Forward contract, financial

A non-standardized contract between two parties to buy or to sell a financial asset at a specified future time at a price agreed upon today. Usually arranged on an over the counter OTC basis, e.g., outside of an established exchange, the party agreeing to buy the underlying asset in the future assumes a long position, and the party agreeing to sell the asset in the future assumes a short position. The price agreed upon is called the delivery price, which is equal to the forward price at the time the contract is entered into.

The price of the underlying instrument, in whatever form, is paid before control of the instrument changes.

UNSPSC 64111701 Forward contract, financial (Commodity) captures state and local government demand for banking, treasury, and custodial financial services—particularly merchant payment processing, liquidity management, arbitrage compliance, and custody of municipal securities and alternative assets. Recent solicitations show state and local issuers and administrative agencies buying these services to manage cash flow, ensure tax-exempt bond compliance, operate short-term borrowing programs, and safeguard large investment portfolios. Issuing bodies span counties (Broward County, Okaloosa County, Dallas), state agencies (Texas Comptroller, Texas Water Development Board, Washington Saves Governing Board), and school districts (Manor Independent School District). Broward County Finance and Administrative Services, the Texas Comptroller, and the Texas Water Development Board have each posted multiple solicitations under or closely adjacent to this code in recent months, signaling sustained demand from large state and local financial officers. The scope encompasses diverse financial intermediary roles: lockbox and merchant card processing (volume-based, with security and compliance requirements), treasury management and zero-balance account operations integrated with ERP systems, third-party custodial services for multi-billion-dollar securities portfolios, commercial paper liquidity facilities for capital programs, arbitrage rebate consulting to ensure Internal Revenue Code compliance on municipal bonds, and emerging services such as cryptocurrency custody for state-level strategic reserves.

Geographic activity concentrates in Texas (Comptroller, Water Development Board, Dallas, Okaloosa County) and Florida (Broward County), with Washington State represented by the auto-IRA program administration vehicle. Broward County's Master Banking Services RFP (GEN2131264P1, due October 13, 2026) is the most recent and comprehensive, seeking qualified vendors for five service groups—Lockbox Services, Merchant Card Services, Purchasing Card Services, Third-Party Custodian/Safekeeping, and Treasury Services—with proposals submitted through the BPRO Electronic Procurement System, a pre-proposal meeting held September 9, 2026 with 42 participants representing 18 vendors including JPMorgan Chase, Wells Fargo Bank, UMB Bank, TD Bank, and Huntington National Bank, and SBE/CBE preferences under Broward's Office of Economic and Small Business Development. The City of Dallas issued a Commercial Paper Liquidity Provider RFP (BEZ2600030089, due May 22, 2026) seeking financial institutions to backstop three capital programs (GO, LEAP airport, and stormwater management) totaling up to $775 million in short-term authorization, with local preference and 3.71% SBE participation goals. The Texas Comptroller's Bitcoin custody procurement (908261778WS, due July 10, 2026) and the Texas Water Development Board's arbitrage compliance RFQ (58026RFQ0016, due May 28, 2026) at $363,000 maximum illustrate the range of financial services sought—from emerging asset classes to foundational compliance work.