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

© Reuters. A foreign money vendor walks previous digital boards exhibiting the Korean Composite Inventory Value Index (KOSPI) and the change price between the U.S. greenback and South Korean gained at a dealing room of a financial institution, in Seoul, South Korea, March 16, 2023. REUTERS/Kim Soo

SEOUL (Reuters) – South Korea’s overseas change authority on Wednesday stated it would open its foreign money market to world merchants and lengthen buying and selling hours, and that it’s going to undertake guidelines to make sure reform doesn’t result in discrepancy in pricing.

Asia’s fourth-largest financial system will open its U.S. dollar-won market to overseas monetary establishments underneath a pilot program from January. It’ll additionally lengthen onshore buying and selling hours till 2 a.m. from July, the finance ministry stated.

It additionally vowed to boost monitoring and undertake world regulatory practices, as giving overseas traders extra entry to its markets may result in extra market swings.

One such measure is banning the usage of shortcut key inputs between 15:20 p.m. to fifteen:30 p.m. native time to stop speculative orders inflicting value fluctuation amongst these making an attempt to commerce proper earlier than native buying and selling hours finish.

At present, the gained can solely be straight traded with the greenback via native banks, for simply six-and-a-half hours a day from 9 a.m. (0000 GMT) to three:30 p.m.