In the unforeseen event that a particular maturity date is declared a public holiday, what is normal market practice for spot FX?:
A) Extend the contract to the next business day
B) Shorten the contract to the previous business day
C) A new maturity date has to be agreed by the two parties involved
D) ACI's Committee for Professionalism decides on a case by case basis

Question

Quizplus · Accepted Answer

The normal market practice for spot FX is to extend the contract to the next business day if a particular maturity date is declared a public holiday. This is done to ensure that both parties have sufficient time to settle the transaction.

In the Unforeseen Event That a Particular Maturity Date Is