Acronym for Uniform Commercial Code, a set of standardized laws about financial contracts accepted by most states in the US.

The UCC fasciliatetes commerce across state lines by harmonizing business practices. This ensures that a firm can reasonably expect the same procedures to be followed in the majority of states where it does business. The code is divided into 9 sections, covering areas such as negotiable instruments, bank deposits and collecitons, letters of credit, and secured loans.

FX Significance

While the UCC does not bear direct significance to the spot FX market, it does impact the daily mechanics of retail FX trading, as the areas it covers will govern the business dealings of FX market makers with their clients as well as other firms.