Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

South Korea to allow foreign firms trade USD/KRW onshore, extend trading hours from July

Published 11/07/2023, 09:04 PM
Updated 11/07/2023, 09:05 PM
© Reuters. A currency dealer walks past electronic boards showing the Korean Composite Stock Price Index  (KOSPI) and the exchange rate between the U.S. dollar and South Korean won at a dealing room of a bank, in Seoul, South Korea, March 16, 2023.   REUTERS/Kim Soo
USD/KRW
-

SEOUL (Reuters) - South Korea's foreign exchange authority on Wednesday said it will open its currency market to global traders and extend trading hours, and that it will adopt rules to ensure reform does not lead to discrepancy in pricing.

Asia's fourth-largest economy will open its U.S. dollar-won market to foreign financial institutions under a pilot program from January. It will also extend onshore trading hours until 2 a.m. from July, the finance ministry said.

It also vowed to enhance monitoring and adopt global regulatory practices, as giving foreign investors more access to its markets could lead to more market swings.

© Reuters. A currency dealer walks past electronic boards showing the Korean Composite Stock Price Index  (KOSPI) and the exchange rate between the U.S. dollar and South Korean won at a dealing room of a bank, in Seoul, South Korea, March 16, 2023.   REUTERS/Kim Soo-hyeon/File Photo

One such measure is banning the use of shortcut key inputs between 15:20 p.m. to 15:30 p.m. local time to prevent speculative orders causing price fluctuation among those trying to trade right before local trading hours end.

Currently, the won can only be directly traded with the dollar through local banks, for just six-and-a-half hours a day from 9 a.m. (0000 GMT) to 3:30 p.m.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.