In a letter to members, the Committee for Professionalism (CFP) of ACI – The Financial Markets Association, endorsed the announcement made by ACI Australia regarding the generally accepted opening of the financial markets during the year-end of 2005 through the start of 2006. Please refer to ACI’s International Public/Bank Holidays and Non-Settlement Calendar for a specific list of countries that are closed on January 2, 2006.
The same consideration applies to the markets with respect to the New York market regarding the generally accepted opening of the financial market during the year-end of 2005 through the start of 2006.
This announcement or the Australian announcement above will not in any way affect the generality of the contents of the Model Code, including inter alia, Chapter I of the Model Code.
"Certain market standard documents, such as the 2005 Barrier Option Supplement to the 1998 FX and Currency Options Definitions, recently published by The International Swaps and Derivatives Association, Inc, The Emerging Markets Traders Association and The Foreign Exchange Committee which we welcome, contain definitions referring to the market opening hours. For the avoidance of doubt, this announcement will not affect such contractual provisions in the bi-lateral agreements, or the interpretation thereof, entered into by the market participants using such market standard terminologies," says a letter signed by Teruo Tanaka, chair of ACI’s CFP.
According to ACI Australia’s CFP, after consultation with the Australian Forex Exchange Committee, due to global public holidays, there will be no direct market in Australia on Monday, December 26 this year, although Tokyo is open, and Monday, January 2, 2006, when only Paris will be open. Thus both days are considered non-business days in Australia.
The Sydney market opening times for these two weeks will move to 5:00am on Tuesday, December 27, 2005, and 5:00am Tuesday, January 3, 2006.
Members are advised that trades done after (or before) generally accepted trading hours should be managed with care and done pursuant to proper internal procedures. Individual institutions will need to consider their own existing contractual obligations (eg, Barrier Options) with customers and third parties for the time periods that the Tokyo and Paris centres are open.