New Settlement Arrangement for the Forced Currency Conversion in Thailand, Philippines and Malaysia Stock Markets

To streamline the settlement process, improve efficiency, and provide a more consistent experience to our clients, a new settlement arrangement for the stock markets of Thailand, the Philippines, and Malaysia will take effect from May 1, 2024. All funds denominated in Thai Baht (THB), Philippine Peso (PHP) and Malaysian Ringgit (MYR) Malaysia (collectively called “Local Currency”) will be automatically converted into United States Dollars (USD) for settlement. 


Frequently asked questions:

Q: What are the specific settlement arrangement for Thailand, Philippines and Malaysia markets? 

A: All funds in Local Currency in relation to above markets (all such funds collectively called “Local Currency Funds”) will be forced converted into USD by us for settlement, including but not limited to the following:

Purchase Price: payments to be made for the purchase of stocks

Sales Proceeds: sales proceeds arising from the sale of stocks

Other related fund received or to be paid: any receipts and payments MYR in relation to securities traded in such markets (e.g. cash dividends, or payments due to exercising rights).


Q: How will this new settlement arrangement affect me?

A: New settlement arrangement could result in financial losses due to the forced currency conversions that may occur periodically. The currency exchange rates may fluctuate and you may incur losses as a result of such conversions due to the exchange rate fluctuations. You need to bear all the losses in connection with or as a result of such conversions.


Q: Can I exchange the Local Currency via FX Service on Xet International?

A: No, you cannot. Currently, our online FX service only supports the exchange among three specific currencies: HKD, CNY (Offshore) and USD. Any conversion involving currencies other than HKD, CNY (Offshore) and USD must be handled manually.


Q: Can I choose to exchange Local Currency with a currency other than USD?

A. No. Under this new settlement arrangement, all Local Currency Funds are automatically converted into USD to streamline the settlement process. Please ensure you have an adequate USD balance in your account if you need to make a payment in Local Currency. In the event your USD funds are insufficient and you possess balances in other currencies, it is advisable to exchange those into USD to prevent any interest charges that may accrue on any outstanding USD balance.


Q:Will I be charged a handling fee for the conversion? How the exchange rate be determined? How can I check the exchange rate?

A: No additional fees will be charged for this conversion process. The conversion will be carried out at the prevailing exchange rate as determined by us at our sole discretion: (i) on the day when we receive the Local Currency Funds( e.g. dividend income) and (ii) on the day of execution your order, specifically for the Local Currency Funds for securities trading settlement,. For exchange rates, you can refer to the daily statement sent to you at the end of the conversion day.


Q: When will the converted USD amount be recorded to my account or withdrawn from my account?

A: Regarding the Local Currency Funds received by us (e.g. dividend income)and transferred to your account with us, it will be converted into USD; the converted USD amount will be recorded to your account on a following business day of the conversion day; and in respect of the Local Currency Funds for securities trading settlement, on the day of the execution of your order, we will convert your trade into an USD equivalent contract and then we will deposit / deduct the USD equivalent amount into / from your account on the settlement day accordingly.