Seoul's foreign exchange market operated normally on Constitution Day morning as South Korea's new 24-hour forex trading system faced its first public holiday test. Two bank staff arrived at 6 AM to maintain dollar-won trading from 6 AM to 6 AM the following day, with the time-weighted average rate (TWAP) calculated at 4 PM as scheduled. The Bank of Korea established monitoring systems in London and New York to support continuous trading, with Seoul staff covering operations when overseas offices close during Korean national holidays. The system launched approximately 10 days before this first holiday trading session.
Bank of Korea Establishes Overseas Monitoring for 24-Hour Trading
The Bank of Korea built foreign exchange market monitoring infrastructure in London and New York to support 24-hour operations. Overseas offices monitor markets on regular days when not local holidays, but Seoul staff cover shifts during Korean national holidays like Constitution Day when overseas offices close. A market official stated the team monitored the situation alongside the market during the first holiday trading session.
Constitution Day Trading Records Opening Rate at 1,481.00 Won
The first transaction occurred at 9 AM, establishing an opening rate of 1,481.00 won. Trading volume remained light during morning hours, with the exchange rate holding steady at the same price for an extended period while TWAP calculation proceeded normally. Trading volume after 2 AM averaged around 50 transactions per day according to a securities firm forex dealer. The market official noted trading could increase due to a US event scheduled for 10 AM.
Market Participants Conduct System Testing During First Holiday Session
The first holiday trading session functioned primarily as a practical systems check. Financial institutions verified internal systems from transaction execution through accounting, settlement, and risk management. A securities firm forex dealer described the first holiday trading as carrying stronger system inspection and testing characteristics than actual trading activity. Trading volume increased overall, but post-2 AM transactions remained around 50 daily.
No exchange rate announcement occurs on public holidays. The benchmark rate from the previous business day applies, with the 4 PM TWAP serving only as a market indicator. Starting next year, TWAP becomes the benchmark rate, but the protocol of applying the previous rate on holidays continues. The securities firm dealer added that actual corporate remittance demand and interbank settlements face restrictions on holidays, making test trading likely to dominate in the near term, though transaction volume should grow as overnight trading becomes fully active.
FAQ
What happened during Seoul's first public holiday forex trading session?
Seoul's foreign exchange market operated normally on Constitution Day with two bank staff arriving at 6 AM to maintain dollar-won trading from 6 AM to 6 AM the following day. The time-weighted average rate was calculated at 4 PM as scheduled, with the first transaction occurring at 9 AM establishing an opening rate of 1,481.00 won.
How does the Bank of Korea monitor the 24-hour forex market?
The Bank of Korea established monitoring systems in London and New York for 24-hour operations. Overseas offices monitor markets on regular days when not local holidays, while Seoul staff cover shifts during Korean national holidays when overseas offices close.
