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3I0-012 · Question #464

In the unforeseen event that a particular maturity date is declared a public holiday, what is standard market practice for spot FX?

The correct answer is A. to extend the contract to the next business day. See the full explanation below for the reasoning.

Question

In the unforeseen event that a particular maturity date is declared a public holiday, what is standard market practice for spot FX?

Options

  • Ato extend the contract to the next business day
  • Bto shorten the contract to the previous business day
  • CThe two parties involved agree to a new maturity date.
  • DThere is no standard market practice. ACIs Committee for Professionalism decides the issue on a

How the community answered

(33 responses)
  • A
    76% (25)
  • B
    9% (3)
  • C
    3% (1)
  • D
    12% (4)

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