Foreign Exchange Transaction Policy

The governing language of this Policy shall be Japanese. This English translation is made only for reference purpose and shall have no effect.

1. Preamble

In order to conduct the foreign exchange transaction business by complying with the “FX Global Code”, Shinsei Bank, Limited (hereinafter, “the Bank”) has developed and hereby discloses the “Foreign Exchange Transaction Policy” for the Bank’s roles and standard transaction practices of foreign exchange transactions with its customers.
This Policy does not override the laws and regulations that apply to foreign exchange transactions and individual agreement with the Bank’s customers.

2. The Bank’s roles in foreign exchange transactions with its customers

The Bank undertakes foreign exchange transactions with its customers as principal for its own account. This means that, as a party to the transaction, the Bank assumes the risks such as market risk and credit risk that are underlying in the orders or related transactions made by the Bank’s customers. Without a separate individual agreement, the Bank does not act as an agent, trustee, financial advisor for its customers, or any other roles.

3. Transaction requests from customers

Two types of transaction requests can be made from the Bank’s customers:

  • I. Price quotation requests: Customers request the Bank to quote a price
  • II. Order: Customers request the Bank to execute a transaction at the Bank’s own discretion. Customers can add certain conditions to each order (such as “At Best,” and “Stop Loss”).

4. Order handling

The Bank does not guarantee executing customers’ orders under a particular method or executing all or any part of the orders. Without separate individual agreement, the Bank has discretion to decide which order, how, and when to execute (in an electronic method or manually, etc.). Execution of orders depends on financial conditions and the Bank’s foreign exchange position. The Bank may decline to execute orders anytime at its own judgement, and has no obligation to disclose the reason that the Bank did not execute the orders. The Bank may also conduct cover transactions (“pre-hedging”) before accepting or executing customers’ orders for securing customer profit and controlling the Bank’s foreign exchange position.

5. Execution price

As long as there is no separate agreement, the final price at which the Bank contracts with its customers (“execution price”) is the total of a price including the bid-offer spread, the Bank’s costs related to executing the transaction, and factors such as the risks assumed by the Bank and consideration, etc. of the services provided by the Bank to the customer (“mark-up”). Execution prices depend on the financial conditions at the time of execution, the Bank’s foreign exchange position, the customer’s credit standing and transaction status, and other factors. Accordingly, the prices may differ by customer even for the same or similar transactions.
Furthermore, prices quoted by the Bank to the customer before execution are reference prices at the time of the quote, and therefore guarantee neither the execution at that price nor the execution itself.

6. Handling of customer information

The Bank has introduced policies, procedures, and management methods to manage and protect the confidential information of its customers adequately. However, the Bank may disclose the confidential information of its customers externally as necessary in certain circumstances such as it is required to be disclosed under relevant laws or regulations, or requested by a relevant regulatory authority, etc.

7. Market color

After aggregating, anonymizing, and generalizing it, the Bank may share internally or disclose to third parties information related to its customers’ orders and transactions executed, as “market color”.

8. Information provided by the Bank

Reports or information on market trends and the market outlook provided by the Bank are solely for the purpose of information provision and are not aimed at solicitation for any particular transaction. The Bank provides the information based on publicly available information and data, but does not guarantee the accuracy or certainty of the information. When considering any financial product transaction, customers are advised to sufficiently understand the product and execute the transaction at their own risk and responsibility.