Foreign exchange correspondent functioning rules govern principal accounting, multi-dealer agency, and approved inter-participant dealings. All transactions undertaken by a foreign exchange correspondent must be reflected in the books of account of the relevant principal. An FxC may act as agent for more than one authorised dealer, and with the approval of its principal may deal in foreign exchange with another FxC or authorised person other than its principal. The provision sets out the accounting, agency, and inter-participant dealing conditions governing the functioning of an FxC.