The Seoul Code of Conduct: Guidelines for Foreign Exchange Trading Activities
The Code was drawn up in December 2001 by the Seoul Foreign Exchange Market Committee. It seeks to provide all participants in the market with a common set of best practices and to promote discussions on the improvement of market practices. It consists of General Standards, Ethical Standards, Dealing Principles Standards, and Market Practices for Dealing Procedures.
- General Standards deal with the responsibilities of each market participant, compliance and complaints, contingency planning, and risk management.
- Ethical Standards cover the obligation of confidentiality, prohibition of such behaviors as relays of misinformation and rumors, dealing for personal account, money laundering, and bets and gambling.
- Dealing Principles Standards prescribe clear description of the authority of each staff member, documentation of contract terms, obligatory telephone taping, restrictions on the passing of names of principals, and avoidance of dealing at non-current rates.
- Market Practices for Dealing Procedures are concerned with market opening and closing hours, handling of orders, standard transaction value, new holidays, and back office segregation.
- * The normal time range for transactions via a broker in the Seoul Foreign Exchange Market is from 9:00 AM to 3:30 PM on business days.
- * The minimum amounts which can be exchanged for Korean won through brokerage firms in the Seoul Foreign Exchange Market are US$ 1,000,000 and Yuan(￥) 1,000,000 per transaction, and the trading units are U$ 1,000,000 and Yuan(￥) 1,000,000.