The Foreign Exchange Market必看课件资料.ppt

Essential Readings The Whole Chapter Main Contents Function and Structure of the FOREX Market Forex Spot Market Forex Forward Market International Arbitrage The Function and Structure of the FOREX Market How is Foreign Exchange Market like? Who are the FOREX Market Participants? How is the Forex Market Like? The Forex market is an over-the-counter market 24-hour-a-day,365-day-a-year currency trading What is the volume ? In 2007, the daily volume is $3trillion, an equivalent of more than $600 per person on earth every business day of the year. Normally, London is the largest forex trading center, followed by the New York and Tokyo Foreign Exchange Market Who are the FOREX Market Participants? The FOREX market is a two-tiered market: According to 2007 data: Interbank Market (Wholesale)-86% of the market About 100-200 banks worldwide stand ready to make a market in Foreign exchange. Nonbank dealers account for about 33% of the wholesale market. There are FX brokers who match buy and sell orders but do not carry inventory and FX specialists. Client Market (Retail)-14% of the whole market Market participants include international banks, bank customers, nonbank dealers, FOREX brokers, and central banks. Correspondent Banking Relationships Large commercial banks maintain demand deposit accounts with one another which facilitates the efficient functioning of the forex market. International commercial banks communicate with one another with: SWIFT: The Society for Worldwide Interbank Financial Telecommunications. CHIPS: Clearing House Interbank Payments System ECHO Exchange Clearing House Limited, the first global clearinghouse for settling interbank FOREX transactions. The Foreign Exchange Market Normally forex market is divided into Spot Market Forward Market Spot Market Direct quotations present the value of one foreign currency in home currency. e.g. $1=RMB6.2725 Indirect Quotations present the number of units of a foreign currency per local currency. e