What are the legal responsibilities for violating foreign exchange market transaction management
Based on relevant The law stipulates that any violation of foreign exchange market transaction management shall be ordered by the foreign exchange management authority to make corrections within a time limit, illegal gains shall be confiscated, and a fine shall be imposed. If the circumstances are serious or the violation is not corrected within the time limit, the foreign exchange management authority shall order the company to cease operations.
"Regulations of the People's Republic of China on Foreign Exchange Administration"
Article 47 Financial institutions have In the event of any of the following circumstances, the foreign exchange administration authority shall order correction within a time limit, confiscate the illegal gains, and impose a fine of not less than 200,000 yuan but not more than 1 million yuan; if the circumstances are serious or if correction is not made within the time limit, the foreign exchange administration authority shall order the company to cease operating relevant business:
(1) Handling current account fund receipts and payments without conducting a reasonable review of the authenticity of transaction documents and their consistency with foreign exchange receipts and payments;
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(2) Violation of regulations in handling the collection and payment of capital project funds;
(3) Violation of regulations Handling foreign exchange settlement and sales business;
(4) Violating the comprehensive position management of foreign exchange business;
;">(5) Violating foreign exchange market transaction management.
Factors affecting foreign exchange option prices
Financial planners specifically remind investors that option prices are not proportional to the factors that affect option prices. The only certainty is the direction of influence. The main factors affecting the price of foreign exchange options are:
1. The execution price of the option and the market spot exchange rate
For a call option, the higher the strike price, the smaller the buyer’s profit possibility, and the lower the option price. For put options, the higher the strike price, the greater the possibility of profit for the buyer and the higher the option price. As the spot exchange rate rises, the intrinsic value of the call option increases, and the option premium becomes larger; while the intrinsic value of the put option falls, the option premium becomes smaller.
2. Expiration time (number of days to expiration date)
To The increase in period time will also increase the time value of foreign exchange options, so the price of the option will also increase.
3. The expected exchange rate volatility
The greater the volatility of the exchange rate, the higher the option holding The greater the possibility that someone will make a profit, the greater the risk the option seller takes, and the higher the option price; conversely, the smaller the volatility of the exchange rate, the lower the option price.
4. Domestic and foreign interest rate levels
The selling currency specified in the foreign exchange options contract, The higher the interest rate, the more interest income the option holder can earn by holding the currency before executing the option contract, and the higher the option price. The higher the interest rate of the currency purchased in the foreign exchange option contract, the lower the option price will be because the option holder gives up the higher interest income of the currency before executing the option contract.
The above is the relevant knowledge compiled for you by the editor of the Legal Savior Network. Anyone who violates the management of foreign exchange market transactions will be ordered by the foreign exchange management authority to make corrections within a time limit and the illegal gains will be confiscated. A fine will also be imposed. If the circumstances are serious or if corrections are made within the time limit, the foreign exchange administration authority will order the company to cease operations. If readers encounter other problems, they can come to the Legal Savior website to find a professional team of lawyers for consultation.
