The Seoul Foreign Exchange Market Operating Council revised the Seoul foreign exchange market code of conduct on the 6th, marking the first amendment in two years. The revision responds to the KRW-USD spot market's transition to a 24-hour trading system. Key changes include Article 38's trading hours specification and Article 43's settlement date procedures. The code of conduct establishes trading principles and best practices for foreign exchange bank dealers, brokerage brokers, and other market participants. The previous revision occurred in June 2024 when trading hours were extended to 2am the following day.
Article 38 Revises Trading Hours for 24-Hour KRW-USD Market
Article 38 Section 3 underwent substantial modification to reflect continuous trading. The previous text stated "trading hours for KRW-USD transactions through brokerage companies in the Seoul foreign exchange market are in principle from 9am on bank business days to 2am the following day." The revised version specifies "from Monday 6am to Saturday 6am each week during New York DST (Daylight Saving Time), and from Monday 7am to Saturday 7am each week during other periods." The term "bank business days" was removed, and time zones were adjusted. The change accommodates uninterrupted 24-hour trading between the Korean won and US dollar effective from the 6th. Content related to cross-currency trading hours previously included in Article 38 Section 3 was separated into an independent provision (Section 4).
Article 43 Updates Standard Settlement Date Requirements
Article 43 governing standard settlement dates was also amended. The pre-revision text read "the settlement date for foreign exchange transactions with Korean won as consideration must be a business day in the Seoul foreign exchange market. However, if the settlement date is not a business day in the counterparty currency country's foreign exchange market, the first business day when both markets are simultaneously open shall be the settlement date." The revised version states "the settlement date for foreign exchange transactions with Korean won as consideration shall be a day when both countries—Korea and the counterparty currency country—are business days."
Council Approved Amendment on May 29
The Seoul Foreign Exchange Market Operating Council held a general meeting on May 29 and approved these code of conduct amendments. The last revision to the Seoul foreign exchange market code of conduct occurred in June 2024 (implemented in July) when trading hours for KRW-USD transactions were extended to 2am the following day.
FAQ
What did the Seoul Foreign Exchange Market Operating Council revise on the 6th?
The Council revised the Seoul foreign exchange market code of conduct, specifically amending Article 38 to establish 24-hour trading hours for KRW-USD transactions and updating Article 43's settlement date requirements.
When did the Council approve these code of conduct amendments?
The Seoul Foreign Exchange Market Operating Council approved the amendments at a general meeting held on May 29.
