Questions and Answers

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. The AFXC also supports the first phase of the single global code of conduct for the wholesale FX market (the “Global Code”) and expects to endorse the completed Global Code when it is published in May 2017.
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. The AFXC in conjunction with the Australian Financial Markets Association (AFMA) and ACI Australia announced on 30 June 2008 the introduction of new methodology and timing for calculation of an Australian dollar reference rate. Under this arrangement, WM/Reuters provides market access to its reference rate for the AUD/USD rate at 10.00 am and 4.00 pm Sydney time each day. From 1 July 2008, the WM/Reuters Australian Fix 10.00 am rate replaced the Hedge Settlement Rate which dated from when Australia had a non-deliverable market in the 1970s and was published at 9.45 am.

The 10.00 am and 4.00 pm 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 in April 2013, averaged US$5.3 trillion.
6. How does the Australian market compare in size to other global markets?
The Australian market is the eighth largest in the world as measured by turnover in foreign exchange markets.
7. Where does the Australian dollar rank in global foreign exchange markets?
The Australian dollar is the fifth most traded currency in the world and the Australian dollar/US dollar (AUD/USD) is the fourth most traded currency pair in the world.