With the rapid development of financial markets and the continuous deepening of opening up to the outside world, the importance of currency brokerage business among financial institutions is becoming increasingly prominent. To standardize the currency brokerage business and trading behavior among financial institutions, maintain market order and fairness, and improve the operational efficiency of currency brokerage and trading, this guideline is formulated.
Definition and scope of application. Broker: refers to a currency brokerage company approved by the China Banking Regulatory Commission (hereinafter referred to as "CBRC"), such as Shanghai Guoli Currency Brokerage Co., Ltd. Trader: refers to various financial institutions that have been approved by relevant regulatory authorities in China and are qualified to engage in inter institutional transactions with their own or agency fund accounts. This guideline applies to all types of transactions conducted directly between brokers or traders, including but not limited to domestic and foreign foreign exchange market transactions, money market transactions, bond market transactions, derivative product market transactions, etc.
General guidelines. Professional ethics and skills: All trading personnel and related business personnel of brokers and traders should possess corresponding professional ethics and skills, and follow the procedures stipulated in this guideline to conduct trading activities. Behavioral responsibility: Brokers and traders shall be responsible for the behavior of their trading personnel and related business personnel, ensuring that they receive sufficient training, clear operational authorization, are familiar with and comply with relevant laws, regulations, and policies. Conflict of interest management: Brokers and traders should establish corresponding management systems to control and eliminate potential or actual conflicts of interest that may arise during trading. Counterparty understanding: Before providing brokerage services, brokers and traders should fully understand their counterparties to prevent transactions from being used for illegal purposes.
Risk management and control measures. Risk management system: Brokers and traders should establish relevant business risk management systems and internal control mechanisms to ensure the separation of brokerage and trading business in the front, middle, and back office, and to effectively control risks. New product and business relationship evaluation: Before developing new products or establishing new business relationships, detailed evaluation systems and procedures should be established to understand the basic information, business scope, and trading authority of the counterparty. Authorization and credit system: Traders should establish a clear authorization and credit system, including trading procedures, authorized trading personnel, tradable varieties, open positions, etc.
Transaction procedures and requirements. Quotation and Trading: Brokers and traders usually quote based on actual orders. Once the quotation is accepted or requested by the other party, it is considered accepted and the transaction should usually be concluded. If the quotation is a fictitious offer, it should be specifically stated. Clear trading conditions: Before the transaction is completed, the trader should clarify the various conditions that affect the validity of the actual offer, such as the actual offer with credit conditions and other trading requirements. Transaction Confirmation and Review: Traders and brokers should promptly confirm and review transactions to ensure their accuracy and compliance.
Settlement and brokerage commission (specific content can be formulated according to actual situations, including settlement methods, brokerage commission standards, etc.)
