In the unforeseen event that a particular maturity date is declared a public holiday, what is standard market practice for spot FX?
A) to extend the contract to the next business day
B) to shorten the contract to the previous business day
C) The two parties involved agree to a new maturity date.
D) There is no standard market practice. ACIs Committee for Professionalism decides the issue on a case-by-case basis.

Question

Quizplus · Accepted Answer

The standard market practice in spot FX for a maturity date declared a public holiday is to extend the contract to the next business day. This is to ensure that both parties have the same amount of time to fulfill their obligations under the contract.

In the Unforeseen Event That a Particular Maturity Date Is