On December 6, 2021, the China State Administration of Foreign Exchange ("SAFE") issued the Guidelines on the Code of Conduct for Transactions in the Foreign Exchange Market (the "Guidelines"), with effect on January 1, 2022.
The Guidelines aim to promote the honest, fair, orderly and efficient operation of the foreign exchange (FX) market. The Guidelines include the main content as follows: the provisions of the Guidelines (1) are applicable to the inter-bank market and the over-the-counter (OTC) market; (2) regulate all parties involved in the FX market, including not only institutions engaged in FX transactions, but also the China Foreign Exchange Trading Center ("CFETC"), Shanghai Clearing House, and currency brokerage companies; (3) place focus on regulating the FX market transaction conduct, centering on transaction management and information management; and (4) set a one-year transitional period for banks and other financial institutions to conduct FX OTC transactions with customers.
(Source: China State Administration of Foreign Exchange)
The Watson & Band website is intended for informational purposes only. Nothing in this site is to be construed as creating an attorney-client relationship between the reader and Watson & Band or as offering legal advice on any specific matter. Since we are not providing legal advice through this website, you should not act upon any information that you might receive here without first seeking professional counsel. No client or other reader should act or refrain from acting on the basis of any information contained in the Watson & Band website without seeking appropriate legal or other professional advice based on the particular facts and circumstances at issue.
