Foreign Exchange Market. Global Financial Markets

The Foreign Exchange Market is the oldest financial market in existence. It is also the largest international market in the world.

The Market performs two major functions: it facilitates the foreign exchange needs of exporters and importers, and it enables individuals, corporations and governments to obtain a desired currency mix of their portfolios.

Trading in the Market occurs 24 hours a day in various centres around the world. Deals are concluded bilaterally over telecommunications networks by different counterparties, some of whom serve as market makers or dealers.

The exchange market is global in character, it does not have one centralized location; trading is heavily concentrated in a handful of centres: London, New York, Tokyo, etc. the great majority of foreign exchange trading takes place in the interbank market between traders or market makers who represent large commercial banks or other financial institutions. Foreign exchange departments of large commercial banks are linked across the world through a sophisticated network of communication systems. The market consists of three major sectors: the spot market, the forward and futures markets and the currency options market.

The cornerstone of the global financial market is the Foreign Exchange Market.

The FOREX is really an integral, fundamental sector of the global financial market. It reflects economic relations between countries, like transportation, insurance, tourism, credits, foreign investment, etc.

The market is global in character. It is rather a network of dealing rooms connected by sophisticated communications systems, like telephones, telex machines and electronic dealing systems. Major trading activities are conducted in London, New York, Chicago, Tokyo, Singapore and others.

The major participants in the market are Commercial and investment banks, central banks, governmental agencies, professional fund managers, corporations, brokers, investors, speculators.

think banks play the most important role in currency transactions. Bank dealers at their workplaces are in constant contact by telephones or computers with dealers in different banks. They sit analyzing latest currency quotations they see on display. Banks buy or sell currency either for themselves or on behalf of their clients.

12. STOCK MARKETS/ financial market

The cornerstone of the global financial market is the Foreign Exchange Market.

The FOREX is really an integral, fundamental sector of the global financial market. It reflects economic relations between countries, like transportation, insurance, tourism, credits, foreign investment, etc.

The market is global in character. It is rather a network of dealing rooms connected by sophisticated communications systems, like telephones, telex machines and electronic dealing systems. Major trading activities are conducted in London, New York, Chicago, Tokyo, Singapore and others.

The major participants in the market are Commercial and investment banks, central banks, governmental agencies, professional fund managers, corporations, brokers, investors, speculators.

think banks play the most important role in currency transactions. Bank dealers at their workplaces are in constant contact by telephones or computers with dealers in different banks. They sit analyzing latest currency quotations they see on display. Banks buy or sell currency either for themselves or on behalf of their clients.

Stock Markets are the means through which securities are bought and sold. The origin of stock markets goes back to medieval Italy¹. The appearance of formal stock markets and professional intermediation resulted from the supply of, demand for and turnover in transferable securities. The 19^th century saw a great expansion in issues² of transferable securities.

The popularity of transferable instruments as a means of finance continued to grow and at the beginning of the 20^th century there was an increasing demand for the facilities provided by stock exchanges, with both new ones appearing around the world and old ones becoming larger, more organized and increasingly sophisticated.

The largest, most active and best organized markets were established in Western Europe and the United States. Despite their common European origins there was no single model which every country copied.

Members of stock exchanges drew up rules to protect their own interests and to facilitate the business to be done by creating an orderly and regulated marketplace.

Investors were interested in a far wider range of securities³ than those issued by local enterprises. Increasingly, these local exchanges were integrated into local markets.

There are two basic types of stock markets – (1) organized exchanges, like the New York Stock Exchange (NYSE) or the London Stock Exchange (LSE), and (2) the less formal over-the-counter markets.

The organized security exchanges are tangible physical entities, which have specially designated members⁵ and elected governing bodies – boards of governors.

1.finance and financial system

2.financial management

3. Taxation

4. Taxation in ukraine

5. Economic systems

6. Taxation in the united kingdom

7. Taxation in the usa

8.monetary policy. Central banking

9. Business organizations

10. International monetary system

11. Foreign exchange market. Global financial markets

12. Stock markets/ financial market

Date: 2015-12-17; view: 1377