FREQUENTLY ASKED QUESTIONS

Does the Australian foreign exchange market have a code of conduct?
Who authorises dealers to participate in the Australian foreign exchange market?
What are the regulated trading hours for the Australian foreign exchange market?
Is there a daily exchange rate fix in the Australian market?
What is the size of the global foreign exchange market?
How does the Australian market compare in size to other global markets?
Where does the Australian dollar rank in global foreign exchange markets?

1. Does the Australian foreign exchange market have a code of conduct?: The Australian foreign exchange market follows The Model Code which is maintained by ACI – The Financial Markets Association.
2. Who authorises dealers to participate in the Australian foreign exchange market?: The Australian Securities and Investments Commission (ASIC) licenses dealers.
3. What are the regulated trading hours for the Australian foreign exchange market?: There are no set daily trading hours for the foreign exchange market which operates 24 hours a day. Normal trading conditions are deemed to commence from 5.00 am Sydney time on a Monday morning and to close at 5.00 pm New York time on Friday.
4. Is there a daily exchange rate fix in the Australian market?: There is no fix similar to those in the Tokyo or London markets but a reference rate is struck at 9.45 am each day for the Australian dollar against the US dollar. This rate is called the Hedge Settlement Rate and dates from when Australia had a non deliverable market in the 1970s. The rate is published on the electronic media and ACI Australia’s website.
5. What is the size of the global foreign exchange market?: Daily turnover in the global foreign exchange market, as measured by the Bank for International Settlements, averages around US$ 3.2 trillion.
6. How does the Australian market compare in size to other global markets?: The Australian market is the seventh largest in the world.
7. Where does the Australian dollar rank in global foreign exchange markets?: The Australian dollar/US dollar (AUD/USD) is the fourth most trade currency pair in the world.