It is important that FX market participants agree how trading should take place. An FX Code of Conduct, published in May 2017, adopts a principles-based approach to standards in the FX markets and provides a common set of guidelines to promote the integrity and effective functioning of the wholesale FX market. The code describes agreed market practices. The OTC FX market is full of conventions. The code says market participants should be familiar with conventions around value dates.
Key learning objectives:
What is a value date and what is the standard for spot transactions?
What is the value date convention for forward trades?
How do holiday trading conventions work?
What are the conventions for Latin American and Arab currencies?