By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
AmextaFinanceAmextaFinance
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
AmextaFinanceAmextaFinance
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
AmextaFinance > Markets > Forex > Exclusive-S.Korea considers limiting tenure of local currency, swap traders – sources
Forex

Exclusive-S.Korea considers limiting tenure of local currency, swap traders – sources

News Room
Last updated: 2023/09/18 at 8:52 AM
By News Room
Share
3 Min Read
SHARE

By Seunggyu Lim, Cynthia Kim and Jihoon Lee

SEOUL (Reuters) – South Korea is reviewing measures to limit currency and swap traders’ tenure in local dealing rooms to three to five years, starting as early as next year, two sources with direct knowledge of the matter told Reuters on Friday.

South Korean banks are under heavy pressure to reduce the risks of employee involvement in money laundering, fraud and other financial crimes following a nearly 70 billion won ($52.7 million) embezzlement scandal by an employee at Woori Bank last year.

“Initially, those in forex and derivative divisions were going to stay immune to the staff rotation requirements but the Financial Supervisory Service is trying to apply those rules on investment bank divisions as well as FX, derivative divisions as well,” one of the two sources told Reuters.

“The FSS is in the process of finalizing the measures by collecting views from the bankers’ federation.”

The FSS declined to comment, a spokesperson said.

However, a senior official at the FSS, who declined to be identified, confirmed such discussion is underway to “tighten the grip on internal matters (at banks).”

“As a rule of thumb, we’re not going to make exceptions… But we need to look at opinions submitted from banks and review the matter,” the official said.

Any such measures to limit tenure of staffers will broadly be applied at local banks, with less than 5% of exceptions for those in legal divisions and accounting, as they often require qualifications and licenses to perform the job, bankers with knowledge of the discussion said.

Money managers at local banks are fiercely opposing the move, as fraud checks are already rigorously done in their daily operations through middle- and back offices.

Foreign banks with local branches will not be subject to enforcement on staffer rotations.

The move could be in effect around the time the country’s onshore currency market will be extended to 2 a.m. local time, or the end of London business day.

At present, the Korean won can only be directly traded with the dollar through local banks, for just six-and-a-half hours a day between 9 a.m. and 3:30 p.m.

Once the new hours take effect next year, the government will also permit traders at foreign financial institutions to participate directly in the onshore interbank market without establishing branches in the country, which could expose the dollar-won trading to heightened volatility and competition with experienced dealers abroad.

Read the full article here

News Room September 18, 2023 September 18, 2023
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Trump’s show of force in Los Angeles

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

Apple to give app developers access to its artificial intelligence models

Stay informed with free updatesSimply sign up to the Technology sector myFT…

OpenAI’s expected subscription revenue doubles to $10bn

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

Trump eyes easing US chip export restrictions to secure Chinese rare earths

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

Tesla CEO Elon Musk: “Starting next month I’ll be allocating far more of my time to Tesla”

Watch full video on YouTube

- Advertisement -
Ad imageAd image

You Might Also Like

Forex

Thailand’s weakening baht not all bad for economy – PM

By News Room
Forex

Sterling hits multi-month low, Fed holds rates steady amid inflation concerns

By News Room
Forex

Dollar index on verge of forming bullish ‘golden cross’ – BofA

By News Room
Forex

Japan warns against post-Fed yen slide

By News Room
Forex

Asian currencies stumble amid rising U.S. dollar and hawkish Federal Reserve stance

By News Room
Forex

Asian currencies under pressure due to Federal Reserve’s stance, says HSBC

By News Room
Forex

Dollar rallies, yen under pressure ahead of BOJ rate decision

By News Room
Forex

Gambia’s dalasi remains Africa’s strongest currency amid tourism and remittance inflows

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

YOUR EMAIL HAS BEEN CONFIRMED.
THANK YOU!

Welcome Back!

Sign in to your account

Lost your password?