XIII. Selling Conventions
  1. Quotations

    1. Preliminary Negotiation of Terms - Any qualifying condition (term, size, etc.,) for a transaction should be clearly stated in preliminary negotiation of terms to minimize disputes.
    2. Price qouted should be taken as firm unless otherwise qualified (e.g., under reference, indication only); it should be made absolutely clear whether the price is for indication only.
    3. When a personnel quotes a firm price, whether direct or indirect, he is committed to deal at that price in a marketable amount subject to availability of counterparty lines.
    4. Non-standard amounts should be qualified qoutes at the onset; request for odd and small amounts should be specified by the bank/client requesting for a price.
    5. When dealing in fast markets, e.g., spot FX, client should assume that prices are good only for a short length of time, literally, a matter of seconds.
    6. In less hectic market, the onus is on the sales personnel dealer to place a time limit on the validity of the price or to check with the client if the price has been dealt.
    7. Where a price to his client has been made and wishes to withdraw this from his customer, he should first check with the client if he /she wished to deal, if nothing has been done, the dealer can withdraw and change his price.
    8. Sales staff should check with the client when a considerable time has lapsed if the latter has decided to deal on the price quoted.
    9. A deal is considered concluded upon verbal agreement: "Dictum meum pactum" ( Done) must apply.
    10. When a dealer is withdrawing a price which is being simultaneously hit by a client, the transaction must be concluded.


  2. Deal Records

    All transactions dealt must be recorded comprehensively and accurately as soon as possible. A complete audit trail must be available, from the initial booking of a deal through all stages of its life cycle to its expiration or settlement. All deals must be kept on record for at least two years after final settlement of expiration. Sales blotters must be used to record all relevant details of the transaction.

    The settlement personnel must elevate to the proper level of authority any delays in the submission of deals.