Mitigating Risk and Enhancing Financial Stability in the Global FX Market

Size: px
Start display at page:

Download "Mitigating Risk and Enhancing Financial Stability in the Global FX Market"

Transcription

1 Next > Mitigating Risk and Enhancing Financial Stability in the Global FX Market

2 Reducing Risk in the Global FX Market Mission Statement: To enhance financial stability by providing risk mitigation services to the global FX market. CLS plays a fundamental role in the FX market. Owned by the world s leading financial institutions, it operates the largest multicurrency cash settlement system to mitigate settlement risk for the FX transactions of its Members and their customers. This is achieved through the provision of CLS unique payment-versus-payment (PvP) settlement service which has links to the real time gross settlement (RTGS) systems of the 17 currencies eligible for settlement in CLS. The FX market is a key part of global economic activity. It is the largest financial market by value and is integral to global commerce. The reasons for exchanging currencies are as diverse as the community who trade them. All members of the FX community potentially bear the risk of loss of principal due to settlement risk. Settlement risk is widely recognized as the most significant systemic risk to participants in the FX market, making its mitigation a high priority for the community as a whole. By effectively mitigating this risk for its Members and their customers, CLS plays a critical role in ensuring the smooth running of the FX market and providing stability to broader financial markets. The importance of which is further underscored by CLS designation as a systemically important financial market utility (FMU) 1. Front cover clock: Greenwich Shepherd Gate Clock United Kingdom, 1852 The first to display Greenwich Mean Time to the public. 1 Designated by the Financial Stability Oversight Council, the financial regulator created as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act

3 The Evolution of CLS The impetus behind the creation of CLS came from regulatory concerns regarding the potential for FX settlement risk to be a major source of systemic risk. CLS was established as a private sector initiative to deliver and operate a service to mitigate settlement risk in the FX market. In 2002, CLS was launched with seven currencies and 39 Members. Since then, the CLS community has grown significantly and now includes 17 currencies, over 60 members and thousands of third party participants. CLS unique position within the FX industry enables it to work closely with market participants to develop, adapt and extend its settlement services in response to evolving market requirements. For example, the partnership with the Depository Trust and Clearing Corporation (DTCC) for the OTC market and the introduction of the trade compression service, CLS Aggregation, with Traiana. As the infrastructure that supports the FX market, CLS continues to deliver the settlement service, even during times of severe market stress. The economic uncertainty during the financial crisis of 2008 proved a defining moment for CLS. Despite periods of extreme volatility and deteriorating market sentiment, CLS delivered the settlement service without any failures and the FX market continued to function without disruption. Settlement Risk (also known as Principal Risk) Settlement of FX transactions requires the exchange of principal in two currencies. Settlement or principal risk is the risk that one party to a FX transaction will deliver the currency it sold, but not receive the bought currency from its counterparty, resulting in the loss of principal. It is also known as Herstatt Risk, a name derived from the failure of a privately owned German bank Bankhaus Herstatt. In June 1974, the bank s license was withdrawn by regulators which forced it into liquidation. Time zone differences meant that Bankhaus Herstatt had ceased operations after receiving DEM payments but before it released its USD payments, resulting in a significant loss of principal 2. 2 More information can be found in BIS: Bank Failures in Mature Economies, BCBS Working Papers No. 13, April Caesium Atomic Clock, National Physical Laboratory, United Kingdom, 1955 The first accurate atomic clock which led to the internationally agreed definition of the second. This second has an accuracy of one second in 15 million years. Since launch, CLS has settled over USD 7,700 trillion 2 Mitigating Risk and Enhancing Financial Stability in the Global FX Market 3

4 The Evolution of CLS June 1974 Bankhaus Herstatt fails 1970s March 1996 Committee on Payment and Settlement Systems (CPSS) publishes a report: Settlement Risk In Foreign Exchange Transactions (the Allsopp Report) a strategy for addressing FX settlement risk September 2002 CLS launched 39 Members and seven currencies (Australian Dollar, Canadian Dollar, Euro, Japanese Yen, Swiss Franc, UK Pound, US Dollar) February 2004 First FX transaction settled for a fund counterparty investment management community begin using CLS December 2004 Four more currencies added Hong Kong Dollar, Korean Won, New Zealand Dollar, South African Rand March 2008 CLS settles USD 10.3 trillion in one day a record value for the service September 2008 As conditions deteriorated in the global capital markets following the collapse of Lehman Brothers, CLS delivered the settlement service and the FX market continued to function without disruption May 2010 Period of market volatility, CLS settles an average of over one million payment instructions per day with an average daily value of USD 4.2 trillion September 2011 Record volume day: 1,960,492 payment instructions settled in one day September 2012 CLS celebrates its 10 year Anniversary July 2012 CLS designated a systemically important FMU September 2012 ACI Model Code 3 recommends Institutions active in FX trading should be CLS participants where possible. 1990s September 2003 Four more currencies added Danish Krone, Norwegian Krone, Singapore Dollar and Swedish Krona December 2007 Settlement extended for certain over-thecounter (OTC) credit derivatives through a partnership between the DTCC and CLS May 2008 CPSS publishes a report on settlement risk, which renews the focus on settlement risk reduction, commends the CLS PvP architecture and provides steps to further mitigate settlement risk January 2010 CLS Aggregation launched to address the capacity challenges faced by banks resulting from the growth in FX trading from hedge funds, algorithmic traders, retail and institutional clients 2000s May 2008 Israeli Shekel and Mexican Peso added bringing the total number of currencies settled by CLS up to 17 For over 10 years, CLS has settled FX transactions with finality 3 ACI, The Model Code - The International Code of Conduct and Practice for the Financial Markets, September Cosmo Clock, Yokahama, Japan, 1989 Part clock, part giant ferris wheel. The world s largest clock. 4 Mitigating Risk and Enhancing Financial Stability in the Global FX Market

5 A Global Community Critical Infrastructure CLS settles payment instructions relating to FX trades in 17 currencies, which account for 94%4 of the total daily value of currencies traded globally. CLS role as a critical infrastructure puts it at the center of the FX industry. The CLS community involves a global network of central banks, commercial banks, investment firms, corporates and fund managers. CLS provides settlement services to participants both directly (for Settlement Members) and indirectly (through Settlement Members providing third party access to their customers). CLS works closely with technology vendors, business partners and regulators to ensure delivery of robust and resilient settlement services. Australian Dollar Canadian Dollar Danish Krone Euro Vendors SWIFT (provide connectivity between Settlement Members and CLS) (network and messaging standards) Oversight Committee of 22 central banks Service Delivery and Development Partners 17 RTGS Systems Hong Kong Dollar Israeli Shekel Japanese Yen Korean Won Mexican Peso New Zealand Dollar Norwegian Krone Singapore Dollar Nostros South African Rand Members Liquidity Providers Swedish Krona Swiss Franc UK Pound US Dollar Third Parties CLS is connected to 17 RTGS systems globally, between CET and BIS Triennial Central Bank Survey FX and derivatives market activity in April 2010 (September 2010). 6 Mitigating Risk and Enhancing Financial Stability in the Global FX Market 7

6 Benefits In addition to mitigating settlement risk, there are a number of unique benefits for both direct (Settlement Members) and indirect (third parties) participants that join CLS. Mitigating global FX settlement risk Efficient liquidity management Efficient credit line management Expanded range of counterparties Payment efficiencies through enhanced Straight Through Processing (STP) Huygen Pendulum Clock, Netherlands, 1657 A breakthrough in timekeeping through the discovery of the center of oscillation and its reciprocal relationship with the pivot point of the pendulum. Potential for new third party or nostro business Transparent and standardized processes and confirmations Benefits for Settlement Members Liquidity efficiencies through the multilateral payment netting provided by CLS the amount of cash required by CLS to settle all payment instructions is reduced by an average of 96% (before In/Out Swaps 5 ) Operational and IT efficiencies through standardization and enhanced STP Participation in a unique financial market infrastructure at the center of the FX market which creates opportunities for dialog across the community Business growth and new revenue opportunities through increased trading capacity, the opportunity to offer third party CLS services and FX Prime Brokerage to customers, and the provision of nostro services Higher standards all Settlement Members enter into identical Agreements with CLS and operate under a defined set of the Rules. Adoption of best practices, business continuity processes and resiliency promotes higher standards Benefits for Third Parties Operational and IT efficiencies and cost savings through enhanced STP»Reduced» errors Reduced number of settlements More efficient allocation of monetary and physical resources Improved liquidity management through the reduced number and amount of payments resulting from multilateral payment netting Business growth through increased trading capacity and credit availability Today, on average USD 14.5 billion is paid each day into CLS between CET and The In/Out Swap Service is designed to reduce the payment obligations to CLS and to mitigate liquidity pressures. An In/Out Swap is an intraday swap consisting of two equal and opposite FX transactions that are agreed as an intraday swap. On average, In/Out Swaps reduce payment obligations in CLS by 75%, translating to a funding requirement in CLS of less than 1% of the total gross settlement value. 8 Mitigating Risk and Enhancing Financial Stability in the Global FX Market 9

7 How the CLS Settlement System Works Following a FX trade, Settlement Members submit payment instructions to CLS. These payment instructions are then authenticated and matched by CLS and stored in the system until the settlement date. The CLS daily settlement cycle operates with settlement and funding occurring during a five-hour window when RTGS systems in the CLS settlement currency jurisdictions are open and able to make and receive payments. This enables simultaneous settlement of the payments on both sides of a FX transaction. Each Settlement Member holds a single multicurrency account with CLS. At the start and end of a normal settlement day, each Settlement Member has a zero balance on its account. Under normal operations of the settlement service, CLS starts and ends the day with a zero balance in its central bank accounts and in its Settlement Member accounts. Settlement Members may submit payment instructions relating to their own FX transactions, as well as the FX transactions of their third party customers, directly to CLS. On each settlement date, CLS simultaneously settles each pair of matched payment instructions by making the corresponding debit and credit entries across Settlement Members accounts at CLS. The settlement of the payment instructions and the associated payments are final across CLS books. This finality is one of the most important elements of the CLS system. CLS settles on average between USD 4.5 trillion and USD 5 trillion every working day, 99% of all payment instructions are settled between CET and FX Contracts CLS Member or client trade trade agreed CLS Member or client trade CLS payment instruction* CLS system CLS payment instruction* Payment instructions matched Payment instructions stored until settlement date Funding (via RTGS systems) Payment instructions settled on settlement date (contractual obligation extinguished) Funding (via RTGS systems) *Mandatory SWIFT standards Pay-in and pay-outs from/to Settlement Members either direct of via nostro Grand Central Station, New York, USA, 1913 The compass in the small point at the top correlates with the true north direction with 100% accuracy. 10 Mitigating Risk and Enhancing Financial Stability in the Global FX Market 11

8 Effective Financial Systems Depend on Safe and Efficient Payment Systems Greenwich Shepherd Gate Clock United Kingdom, 1852 The first to display Greenwich Mean Time to the public. A well-managed payment system minimizes the effects of economic disturbances that could otherwise disrupt domestic and international financial markets. Recognizing its role as a critical infrastructure at the center of the FX market, performance, resilience and security are all of paramount importance to CLS. A real-time secure global system able to flex to meet the demands of an evolving market Mirrored environments in multiple data centers to deliver the highest levels of resilience and business continuity A standard legal framework for settlement finality A comprehensive regulatory framework: CLS is supervised and regulated by the Federal Reserve Bank of New York CLS is subject to a unique cooperative oversight arrangement with the central banks whose currencies are settled in CLS (Oversight Committee) A robust governance structure combining an appropriate level of flexibility with high standards of business transparency, accountability and independence Compliance with the Core Principles for Systemically Important Payment Systems 6 which provides guidelines for the design and operation of safer and more efficient systemically important payment systems Compliance with the Interagency Paper on Sound Practices to Strengthen the Resilience of the US Financial System 7 which recommends reliance upon dual data centers with synchronous data replication 6 The Core Principles for Systemically Important Payment Systems was published by the Committee on Payment and Settlement Systems (CPSS) in In April 2012, the CPSS and the Technical Committee of the International Organization of Securities Commissions (IOSCO) published: Principles for Financial Market Infrastructures. It replaced the previously published Core Principles. CLS is currently working to attain these new standards. 7 The Interagency Paper on Sound Practices to Strengthen the Resilience of the US Financial System was jointly published by the Board of Governors of the Federal Reserve, the Office of the Comptroller of the Currency and the Securities and Exchange Commission in the United States in April Mitigating Risk and Enhancing Financial Stability in the Global FX Market

9 < Previous US Financial Square 32 Old Slip, 23rd Floor New York NY US tel: fax: UK Exchange Tower One Harbour Exchange Square London E14 9GE UK tel: +44 (0) fax: +44 (0) Japan Mitsui ni-goukan, Nihonbashi Muromachi Chuo-ku Tokyo Japan tel: +81 (0) fax: +81 (0) CLS and the CLS Logo are registered trademarks of CLS UK Intermediate Holdings Ltd 2012 CLS Intermediate Holdings Ltd.

Currency Program Explanation of Phases

Currency Program Explanation of Phases for onboarding a prospective currency A practical guide for central banks Contents SECTION TITLE PAGE 1 2 3 4 5 6 7 8 Appendix I: Introduction...04 Summary of phases - key steps, processes and requirements...06

More information

CLS Bank International 39 Broadway 29th Floor New York NY 10006

CLS Bank International 39 Broadway 29th Floor New York NY 10006 Alan Bozian President and Chief Executive Officer CLS Bank International 39 Broadway 29th Floor New York NY 10006 Tel: +1 212 943 2293 Fax: +1 212 363 6998 abozian@cls-bank.com United States Department

More information

www.cls-group.com Currency Program Briefing Book www.cls-group.com 2

www.cls-group.com Currency Program Briefing Book www.cls-group.com 2 www.cls-group.com Currency Program Briefing Book www.cls-group.com 2 Front cover clock: Cosmo Clock, Yokohama, Japan, 1989 Part clock, part giant ferris wheel. The world s largest clock. Introduction CLS

More information

Reducing foreign exchange settlement risk 1

Reducing foreign exchange settlement risk 1 Robert Lindley +41 61 280 8292 robert.lindley@bis.org Reducing foreign exchange settlement risk 1 Much progress has been made in reducing settlement risk in foreign exchange markets, particularly through

More information

PRINCIPLES FOR FINANCIAL MARKET INFRASTRUCTURES DISCLOSURE

PRINCIPLES FOR FINANCIAL MARKET INFRASTRUCTURES DISCLOSURE PRINCIPLES FOR FINANCIAL MARKET INFRASTRUCTURES DISCLOSURE Responding institution: CLS Bank International, an Edge Act corporation under Section 25A of the United States Federal Reserve Act. Jurisdiction(s)

More information

CLS Bank International

CLS Bank International CLS Bank International Assessment of Compliance with the Core Principles for Systemically Important Payment Systems December 2011 2011 CLS Bank International TABLE OF CONTENTS EXECUTIVE SUMMARY... 1 0

More information

CLS Third Party Evaluation Guide

CLS Third Party Evaluation Guide CLS Third Party Evaluation Guide August, 2013 An overview of the potential benefits that an institution should consider when evaluating indirect participation in the CLS settlement service. Contents 1.

More information

Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 ( Act ) 1 and Rule

Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 ( Act ) 1 and Rule SECURITIES AND EXCHANGE COMMISSION (Release No. 34-57693; File No. SR-Amex-2008-07) April 21, 2008 Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Order Granting Accelerated

More information

Optimizing settlement risk management: A White Paper by Wall Street Systems

Optimizing settlement risk management: A White Paper by Wall Street Systems Optimizing settlement risk management: CLS and beyond A White Paper by Wall Street Systems CONTENTS Introduction 3 CLS: solving the settlement risk conundrum 4 The history of FX settlement risk 5 The Herstatt

More information

The Continuous Linked Settlement foreign exchange settlement system (CLS)

The Continuous Linked Settlement foreign exchange settlement system (CLS) The Continuous Linked Settlement foreign exchange settlement system (CLS) November 2009 By Jürg Mägerle and David Maurer 1 Introduction Continuous Linked Settlement (CLS) is an international payment system

More information

FX market trends before, between and beyond Triennial Surveys 1

FX market trends before, between and beyond Triennial Surveys 1 Morten Bech morten.bech@bis.org Jhuvesh Sobrun jhuvesh.sobrun@bis.org FX market trends before, between and beyond Triennial Surveys 1 This special feature looks at trading activity in the foreign exchange

More information

Settlement risk in foreign exchange markets and CLS Bank 1

Settlement risk in foreign exchange markets and CLS Bank 1 Gabriele Galati +41 61 280 8923 gabriele.galati@bis.org Settlement risk in foreign exchange markets and CLS Bank 1 Introduction In September 2002, CLS Bank, a new financial institution set up to reduce

More information

Chapter 2: The balance of payments and the foreign exchange market

Chapter 2: The balance of payments and the foreign exchange market Chapter 2: The balance of payments and the foreign exchange market 1- Exchange rates and international transactions Currency Overview Asia 10:46 a.m. EDT 03/22/11 Last (bid) Prior Day Australian Dollar

More information

CLS Bank: Managing Foreign Exchange Settlement Risk

CLS Bank: Managing Foreign Exchange Settlement Risk CLS Bank: Managing Foreign Exchange Settlement Risk Paul Miller, Department of Banking Operations, and Carol Ann Northcott, Department of Monetary and Financial Analysis Based in New York City and regulated

More information

Re: Notice and Request for Comments - Determinations of Foreign Exchange Swaps and Forwards (75 Fed. Reg. 66829)

Re: Notice and Request for Comments - Determinations of Foreign Exchange Swaps and Forwards (75 Fed. Reg. 66829) ISDA International Swaps and Derivatives Association, Inc. 360 Madison Avenue, 16th Floor New York, NY 10017 United States of America Telephone: 1 (212) 901-6000 Facsimile: 1 (212) 901-6001 email: isda@isda.org

More information

CLS AND BILATERAL NETTING BETWEEN A ROCK AND A HARD PLACE. A White Paper by Wall Street Systems

CLS AND BILATERAL NETTING BETWEEN A ROCK AND A HARD PLACE. A White Paper by Wall Street Systems CLS AND BILATERAL NETTING BETWEEN A ROCK AND A HARD PLACE A White Paper by Wall Street Systems CLS And BiLAterAL netting BetWeen A rock And A HArd PLACe Content Introduction 3 FX Settlement Risk 4 The

More information

Mechanics of Foreign Exchange - money movement around the world and how different currencies will affect your profit

Mechanics of Foreign Exchange - money movement around the world and how different currencies will affect your profit Dear Business Leader, Welcome to the Business Insight Seminars an exclusive, informational series to help you gain a powerful edge in today s highly competitive business environment. Our first topic in

More information

The foreign exchange and derivatives markets in Hong Kong

The foreign exchange and derivatives markets in Hong Kong The foreign exchange and derivatives markets in Hong Kong by the Banking Supervision Department The results of the latest triennial global survey of turnover in the markets for foreign exchange (FX) and

More information

Its context and value in volatile markets. Lynn Mathews CLS Services

Its context and value in volatile markets. Lynn Mathews CLS Services CLS: Its context and value in volatile markets Lynn Mathews CLS Services www.cls-group.com CLS and the CLS Logo are registered trademarks of CLS UK Intermediate Holdings Ltd 2008 CLS UK Intermediate Holdings

More information

An Introduction to. CME Foreign Exchange Products

An Introduction to. CME Foreign Exchange Products An Introduction to CME Foreign Exchange Products What Are Futures and Options? Futures contracts are standardized, legally binding agreements to buy or sell a specific product or financial instrument in

More information

Chapter 1.2. Currencies Come in Pairs

Chapter 1.2. Currencies Come in Pairs Chapter 1.2 Currencies Come in Pairs 0 GETTING STARTED You know the advantages of trading forex, and you are excited to start trading. Now you need to learn what this market is all about. How does it work?

More information

BIS TRIENNIAL SURVEY OF FOREIGN EXCHANGE AND OVER-THE-COUNTER INTEREST RATE DERIVATIVES MARKETS IN APRIL 2013 UK DATA - RESULTS SUMMARY

BIS TRIENNIAL SURVEY OF FOREIGN EXCHANGE AND OVER-THE-COUNTER INTEREST RATE DERIVATIVES MARKETS IN APRIL 2013 UK DATA - RESULTS SUMMARY BIS TRIENNIAL SURVEY OF FOREIGN EXCHANGE AND OVER-THE-COUNTER INTEREST RATE DERIVATIVES MARKETS IN APRIL 2013 UK DATA - RESULTS SUMMARY In April this year, central banks and monetary authorities in 53

More information

CURRENCY INDICES FTSE PUBLICATIONS. FTSE Cürex FX Index Series.

CURRENCY INDICES FTSE PUBLICATIONS. FTSE Cürex FX Index Series. CURRENCY INDICES FTSE PUBLICATIONS FTSE Cürex FX Index Series. BEIJING BOSTON DUBAI HONG KONG LONDON MILAN MUMBAI NEW YORK PARIS SAN FRANCISCO SHANGHAI SYDNEY TOKYO FTSE FTSE Group ( FTSE ) is a world-leader

More information

The U.S. dollar continues to be a primary beneficiary during times of market stress. In our view:

The U.S. dollar continues to be a primary beneficiary during times of market stress. In our view: WisdomTree ETFs BLOOMBERG U.S. DOLLAR BULLISH FUND USDU Over the past few years, investors have become increasingly sophisticated. Not only do they understand the benefits of expanding their holdings beyond

More information

Management of Foreign Exchange Settlement Risk at Canadian Banks

Management of Foreign Exchange Settlement Risk at Canadian Banks Financial System Review December 2007 Management of Foreign Exchange Settlement Risk at Canadian Banks Neville Arjani I n a standard foreign exchange transaction, parties to a trade agree to exchange value

More information

How To Understand The Interdependencies Of Payment And Settlement Systems In Hong Kong

How To Understand The Interdependencies Of Payment And Settlement Systems In Hong Kong Interdependencies of payment and settlement systems: the Hong Kong experience by the Financial Infrastructure Department Payment and settlement systems around the world have become more interdependent

More information

Chapter 1.2. Currencies Come in Pairs

Chapter 1.2. Currencies Come in Pairs Chapter 1.2 Currencies Come in Pairs 0 GETTING STARTED You know the advantages of trading forex, and you are excited to start trading. Now you need to learn what this market is all about. How does it work?

More information

Section 4s(h)(3)(B) of the CEA directs the Commission to adopt business conduct standards for SDs and MSPs that:

Section 4s(h)(3)(B) of the CEA directs the Commission to adopt business conduct standards for SDs and MSPs that: U.S. COMMODITY FUTURES TRADING COMMISSION Three Lafayette Centre 1155 21st Street, NW, Washington, DC 20581 Telephone: (202) 418-5977 Facsimile: (202) 418-5407 gbarnett@cftc.gov Division of Swap Dealer

More information

MSc in FINANCE. FINANCIAL ENGINEERING May 2012. Settlement Risk. Giacomo Marchetti Massimiliano Morelli Vincenzo Raimondi

MSc in FINANCE. FINANCIAL ENGINEERING May 2012. Settlement Risk. Giacomo Marchetti Massimiliano Morelli Vincenzo Raimondi MSc in FINANCE FINANCIAL ENGINEERING May 2012 Settlement Risk Giacomo Marchetti Massimiliano Morelli Vincenzo Raimondi 1 - Definition of 'Settlement Risk'. A key source of risk is the possibility that

More information

LAST TRADING DAYS (Except Canadian Dollars) - December 17, 2007, March 17, 2008, June 16, 2008, September 15, 2008 and December 15, 2008

LAST TRADING DAYS (Except Canadian Dollars) - December 17, 2007, March 17, 2008, June 16, 2008, September 15, 2008 and December 15, 2008 DELIVERY PROCEDURES FOR FOREIGN CURRENCIES AND CROSS-RATE FUTURES CONTRACTS AND CME$INDEX LAST TRADING DAYS (Except Canadian Dollars) - December 17, 2007, March 17, 2008, June 16, 2008, September 15, 2008

More information

Monetary and Economic Department OTC derivatives market activity in the second half of 2007

Monetary and Economic Department OTC derivatives market activity in the second half of 2007 Monetary and Economic Department OTC derivatives market activity in the second half of 27 May 28 Queries concerning this release should be addressed to the authors listed below: Section I: Naohiko Baba

More information

THE FOREIGN EXCHANGE COMMITTEE SEMI-ANNUAL FOREIGN EXCHANGE VOLUME SURVEY REPORTING GUIDELINES

THE FOREIGN EXCHANGE COMMITTEE SEMI-ANNUAL FOREIGN EXCHANGE VOLUME SURVEY REPORTING GUIDELINES THE FOREIGN EXCHANGE COMMITTEE SEMI-ANNUAL FOREIGN EXCHANGE VOLUME SURVEY REPORTING GUIDELINES Table of Contents I. GENERAL INSTRUCTIONS... 1 A. Organization of the Instruction Book... 1 B. Purpose of

More information

Toward Further Development of the Tokyo Financial Market: Issues on Repo Market Reform

Toward Further Development of the Tokyo Financial Market: Issues on Repo Market Reform May 13, 2015 Bank of Japan Toward Further Development of the Tokyo Financial Market: Issues on Repo Market Reform Keynote Speech at the Futures Industry Association Japan (FIA Japan) Financial Market Conference

More information

The foreign-exchange and derivatives markets in Hong Kong

The foreign-exchange and derivatives markets in Hong Kong The foreign-exchange and derivatives markets in Hong Kong by the Banking Policy Department The results of the latest triennial global survey of turnover in the markets for foreign-exchange (FX) and over-the-counter

More information

Contents. Introduction To Volopa. Bank To Bank. The Volopa Lifestyle Card. Lifestyle Card In Use. How Your Money Is Managed. Manage Your Money Online

Contents. Introduction To Volopa. Bank To Bank. The Volopa Lifestyle Card. Lifestyle Card In Use. How Your Money Is Managed. Manage Your Money Online VOLOPA SOLUTIONS Contents Introduction To Volopa Bank To Bank The Volopa Lifestyle Card Lifestyle Card In Use How Your Money Is Managed Manage Your Money Online Branded Cards & Partnership About Volopa

More information

PayPal Foreign Currency Acceptance Training Guide

PayPal Foreign Currency Acceptance Training Guide 1 PayPal Foreign Currency Acceptance Training Guide Table of Contents PayPal Overview... 2 What is Different from Prior PayPal Payments... 2 How to Create a PayPal Account... 3 Foreign Currency Payments

More information

Turnover of the foreign exchange and derivatives market in Hong Kong

Turnover of the foreign exchange and derivatives market in Hong Kong Turnover of the foreign exchange and derivatives market in Hong Kong by the Banking Policy Department Hong Kong advanced one place to rank sixth in the global foreign exchange market and seventh when taking

More information

Chapter 5. The Foreign Exchange Market. Foreign Exchange Markets: Learning Objectives. Foreign Exchange Markets. Foreign Exchange Markets

Chapter 5. The Foreign Exchange Market. Foreign Exchange Markets: Learning Objectives. Foreign Exchange Markets. Foreign Exchange Markets Chapter 5 The Foreign Exchange Market Foreign Exchange Markets: Learning Objectives Examine the functions performed by the foreign exchange (FOREX) market, its participants, size, geographic and currency

More information

Ch. 6 The Foreign Exchange Market. Foreign Exchange Markets. Functions of the FOREX Market

Ch. 6 The Foreign Exchange Market. Foreign Exchange Markets. Functions of the FOREX Market Ch. 6 The Foreign Exchange Market Topics FOREX (or FX) Markets FOREX Transactions FOREX Market Participants FOREX Rates & Quotations Cross Rates and Arbitrage Foreign Exchange Markets The FOREX market

More information

Currency classifications

Currency classifications 0136PE_Chapter_03 1/5/03 10:52 am Page 25 3 Currency classifications Francesca Taylor, Taylor Associates Introduction Broad classification of currencies Indications of currency classifications Major currencies

More information

Agathe Côté: Toward a stronger financial market infrastructure for Canada taking stock

Agathe Côté: Toward a stronger financial market infrastructure for Canada taking stock Agathe Côté: Toward a stronger financial market infrastructure for Canada taking stock Remarks by Ms Agathe Côté, Deputy Governor of the Bank of Canada, to the Association for Financial Professionals of

More information

The Office of the Comptroller of the Currency (OCC) and the Federal

The Office of the Comptroller of the Currency (OCC) and the Federal OCC and FDIC Adopt Rules Regarding Retail Forex Transactions August 8, 2011 If you have any questions regarding the matters discussed in this memorandum, please contact the following attorneys or call

More information

First 10 transactions Transactions 11 to 50 Transactions 51 and above

First 10 transactions Transactions 11 to 50 Transactions 51 and above This is our standard Tariff of charges for your accounts held at the UK Branch of Silicon Valley Bank. It sets out the prices that we charge you for our most frequently used account services in the UK.

More information

Impact of Treasury s OTC Derivatives Legislation on the Foreign Exchange Market. Corporations participate in the foreign exchange market to:

Impact of Treasury s OTC Derivatives Legislation on the Foreign Exchange Market. Corporations participate in the foreign exchange market to: ISDA International Swaps and Derivatives Association, Inc. 360 Madison Avenue, 16th Floor New York, NY 10017 United States of America Telephone: 1 (212) 901-6000 Facsimile: 1 (212) 901-6001 email: isda@isda.org

More information

Request for Relief Regarding Obligation to Provide Pre-Trade Mid-Market Mark for Certain Foreign Exchange Transactions

Request for Relief Regarding Obligation to Provide Pre-Trade Mid-Market Mark for Certain Foreign Exchange Transactions U.S. COMMODITY FUTURES TRADING COMMISSION Three Lafayette Centre 1155 21st Street, NW, Washington, DC 20581 Telephone: (202) 418-5977 Facsimile: (202) 418-5407 gbarnett@cftc.gov Division of Swap Dealer

More information

AN INTRODUCTION TO TRADING CURRENCIES

AN INTRODUCTION TO TRADING CURRENCIES The ins and outs of trading currencies AN INTRODUCTION TO TRADING CURRENCIES A FOREX.com educational guide K$ $ kr HK$ $ FOREX.com is a trading name of GAIN Capital - FOREX.com Canada Limited is a member

More information

International Finance A note on the foreign exchange market and its instruments

International Finance A note on the foreign exchange market and its instruments International Finance Professor Michel A. Robe International Finance A note on the foreign exchange market and its instruments i. FOREX MARKET The foreign exchange (forex or FX) market is an over-the-counter

More information

1. Debit the account specified by the Customer for the amount agreed to for the purchase of the foreign currency;

1. Debit the account specified by the Customer for the amount agreed to for the purchase of the foreign currency; Foreign Exchange FX Direct - User Guide RULES OF OPERATION The FX Direct Service is provided by Royal Bank of Canada (the Bank). A) When Does a Foreign Exchange Deal Exist? A valid and binding transaction

More information

FxPro Education. Introduction to FX markets

FxPro Education. Introduction to FX markets FxPro Education Within any economy, consumers and businesses use currency as a medium of exchange. In the UK, pound sterling is the national currency, while in the United States it is the US dollar. Modern

More information

THE PAYMENT AND SETTLEMENT SYSTEMS 2007

THE PAYMENT AND SETTLEMENT SYSTEMS 2007 THE PAYMENT AND SETTLEMENT SYSTEMS 2007 1. INTRODUCTION The payment and settlement system was upgraded in 2007 with the introduction of a Real Time Gross Settlement (RTGS) system known in Israel as Zahav,

More information

Foreign Exchange Trading Managers

Foreign Exchange Trading Managers Foreign Exchange Trading Managers Quantum Leap Capital (abbreviated as QLC ) is a Forex Trading Manager which focuses on trading worldwide foreign currencies on behalf of institutions, corporates and individual

More information

Isabel 6 Guide Group #1. How to encode SEPA and Non-SEPA transactions from an ING Belgium (BBRUBEBB) account?

Isabel 6 Guide Group #1. How to encode SEPA and Non-SEPA transactions from an ING Belgium (BBRUBEBB) account? Isabel 6 Guide Group #1 How to encode SEPA and Non-SEPA transactions from an ING Belgium (BBRUBEBB) account? Version 2.1 06-11-2013 Purpose This document describes how to use the Isabel 6 Payment Wizard

More information

PLEASE READ THIS DOCUMENT CAREFULLY

PLEASE READ THIS DOCUMENT CAREFULLY Multi Currency Savings : Pre-Account Opening Risk Explanation Form and Product Fact Sheet マルチカレンシー 普 通 預 金 契 約 締 結 前 交 付 書 面 兼 商 品 説 明 書 ( 兼 外 貨 預 金 等 書 面 ) (This is a Document to be delivered prior to

More information

Introduction to Foreign Exchange. Andrew Wilkinson

Introduction to Foreign Exchange. Andrew Wilkinson Introduction to Foreign Exchange Andrew Wilkinson Risk Disclosure Options and Futures are not suitable for all investors. The amount you may lose may be greater than your initial investment. Before trading

More information

The 2013 Tailored Resolution Plan

The 2013 Tailored Resolution Plan Section 1: Public Section 1 Contents (a) Public Section... 3 (1) The names of material entities... 3 (2) A description of core business lines... 4 (3) Consolidated or segment financial information regarding

More information

Economic commentaries

Economic commentaries No. 3 211 Economic commentaries Liquidity in the foreign exchange market for EUR/NOK Kathrine Lund, Department for Market Operations and Analysis, Norges Bank* *The views expressed in this article are

More information

PayPal Integration. PayPal can now be easily integrated via EBS s single interface online platform.

PayPal Integration. PayPal can now be easily integrated via EBS s single interface online platform. Expand your online business with PayPal and EBS PayPal Integration PayPal can now be easily integrated via EBS s single interface online platform. By adding PayPal via the EBS platform, you gain access

More information

Financial infrastructure in Hong Kong. Foreword. Foreword

Financial infrastructure in Hong Kong. Foreword. Foreword Contents Page Foreword 28 Introduction 30 Importance of financial infrastructure 31 Strategic objective 32 Financial infrastructure in Hong Kong 34 Payment systems 35 Debt securities settlement system

More information

Multi-currency cross-border payment arrangements between Hong Kong and Mainland China

Multi-currency cross-border payment arrangements between Hong Kong and Mainland China Multi-currency cross-border payment arrangements between Hong Kong and Mainland China by the Financial Infrastructure Department The establishment of multi-currency cross-border payment arrangements between

More information

The Value of Derivatives

The Value of Derivatives The Value of Derivatives International Swaps and Derivatives Association, Inc. WHO USES DERIVATIVES AND WHY? MANUFACTURING INTERNATIONAL TRADE TRANSPORTATION FINANCING COSTS EXCHANGE RATES FUEL COSTS MANUFACTURERS

More information

What is Forex Trading?

What is Forex Trading? What is Forex Trading? Foreign exchange, commonly known as Forex or FX, is the exchange of one currency for another at an agreed exchange price on the over-the-counter (OTC) market. Forex is the world

More information

The Foreign Exchange Market. Role of Foreign Exchange Markets

The Foreign Exchange Market. Role of Foreign Exchange Markets The Foreign Exchange Market Role of the foreign exchange markets Foreign exchange (FX) basics» Terminology» Types of contracts Organization and institutional features» Actors - brokers, dealers» Segments

More information

Introductory remarks by Jean-Pierre Danthine

Introductory remarks by Jean-Pierre Danthine abcdefg News conference Berne, 15 December 2011 Introductory remarks by Jean-Pierre Danthine I would like to address three main issues today. These are the acute market volatility experienced this summer,

More information

Trading forex is buying one currency while at the same time selling a different currency.

Trading forex is buying one currency while at the same time selling a different currency. F O R E I G N E X C H A N G E B A S I C S T E R M S U S E D I N F O R E X T R A D I N G The foreign exchange market is global, and it is conducted over-the-counter (OTC) through the use of electronic trading

More information

Federal Reserve Policy on Payments System Risk

Federal Reserve Policy on Payments System Risk Federal Reserve Policy on Payments System Risk As amended effective January 11, 2007 INTRODUCTION RISKS IN PAYMENTS AND SETTLEMENT SYTEMS I. RISK MANAGEMENT IN PAYMENTS AND SETTLEMENT SYSTEMS A. Scope

More information

The Modern Foreign Exchange Market

The Modern Foreign Exchange Market fxpa www.fxpa.org Foreign Exchange Professionals Association The Modern Foreign Exchange Market Key Concepts Foreign exchange (FX) is a global market in which any two currencies can be traded against each

More information

Basel Committee on Banking Supervision. Supervisory guidance for managing risks associated with the settlement of foreign exchange transactions

Basel Committee on Banking Supervision. Supervisory guidance for managing risks associated with the settlement of foreign exchange transactions Basel Committee on Banking Supervision Consultative document Supervisory guidance for managing risks associated with the settlement of foreign exchange transactions Issued for comment by 12 October 2012

More information

THE FOREIGN EXCHANGE JOINT STANDING COMMITTEE Threadneedle Street London EC2R 8AH

THE FOREIGN EXCHANGE JOINT STANDING COMMITTEE Threadneedle Street London EC2R 8AH THE FOREIGN EXCHANGE JOINT STANDING COMMITTEE Threadneedle Street London EC2R 8AH In October 2011, 30 financial institutions active in the UK foreign exchange market participated in the fifteenth published

More information

If brokers wish Xchanging to group delinked transactions the LPAN(s) must be marked Grouped or Please Group.

If brokers wish Xchanging to group delinked transactions the LPAN(s) must be marked Grouped or Please Group. PREMIUM SUBMISSIONS 1. General These instructions apply to all premium submissions (excluding proportional treaty accounts) to Xchanging. All premium entries submitted, including FDOs, must be accompanied

More information

NEW TO FOREX? FOREIGN EXCHANGE RATE SYSTEMS There are basically two types of exchange rate systems:

NEW TO FOREX? FOREIGN EXCHANGE RATE SYSTEMS There are basically two types of exchange rate systems: NEW TO FOREX? WHAT IS FOREIGN EXCHANGE Foreign Exchange (FX or Forex) is one of the largest and most liquid financial markets in the world. According to the authoritative Triennial Central Bank Survey

More information

Re: Consultation Paper on the proposed regulatory regime for the over the counter derivatives market in Hong Kong

Re: Consultation Paper on the proposed regulatory regime for the over the counter derivatives market in Hong Kong 30 November 2011 The Market Development Division Hong Kong Monetary Authority 55 th Floor Two International Finance Centre 8 Finance Street Central Hong Kong Submitted via email to: mdd@hkma.gov.hk Supervision

More information

Settlement of foreign exchange transactions

Settlement of foreign exchange transactions Hallgrímur Ásgeirsson 1 Settlement of foreign exchange transactions 1. Introduction Foreign exchange transactions involve a wide range of risks for credit institutions that are active in the foreign exchange

More information

TRADING CURRENCIES. OhMyGeorge! Gamers Make The Best Traders! www.ohmygeorge.com

TRADING CURRENCIES. OhMyGeorge! Gamers Make The Best Traders! www.ohmygeorge.com TRADING CURRENCIES 101 OhMyGeorge! Gamers Make The Best Traders! 1 CONTENT PART 1 What is currencies trading? p.3 PART 2 Reading a currency quote p.6 PART 3 How to get started? p.10 PART 4 Forex trading

More information

THE AUSTRALIAN FOREIGN EXCHANGE MARKET

THE AUSTRALIAN FOREIGN EXCHANGE MARKET The Reserve Australian Bank Foreign of Australia Exchange Bulletin Market May 1993 THE AUSTRALIAN FOREIGN EXCHANGE MARKET This article reviews recent developments in the Australian foreign exchange market.1

More information

2016 Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Market Activity Frequently asked questions and answers

2016 Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Market Activity Frequently asked questions and answers 20 January 2016 2016 Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Market Activity Frequently asked questions and answers Table of Contents A. Risk categories... 3 1. Foreign exchange

More information

Bendigo Foreign Exchange Swap Contracts. Product Disclosure Statement.

Bendigo Foreign Exchange Swap Contracts. Product Disclosure Statement. Bendigo Foreign Exchange Swap Contracts. Product Disclosure Statement. 1 October 2015 1 About this document This Product Disclosure Statement (PDS) is an important document. It provides you with information

More information

SUBSCRIPTION AND SaaS FEATURES

SUBSCRIPTION AND SaaS FEATURES www.revenuewire.com SUBSCRIPTION AND SaaS FEATURES MONTHLY 6 MONTHS ANNUALY 1 3 2 Branded, Fully Customizable Order Pages Customize your checkout process and add your own content and graphics to your cart

More information

Hedging FX Exposures: Which Strategy is Right for Your Business?

Hedging FX Exposures: Which Strategy is Right for Your Business? Hedging FX Exposures: Which Strategy is Right for Your Business? This article addresses foreign exchange (FX) risk, examines a large Swiss multinational company and the impact on its financial statements

More information

IOSCO BN01-11 Consultative Report

IOSCO BN01-11 Consultative Report IOSCO BN01-11 10 March 2011 Cover note to the consultative report 1 Overview of the report The consultative report on Principles for Financial Market Infrastructures (consultative report) was prepared

More information

AN INTRODUCTION TO THE FOREIGN EXCHANGE MARKET

AN INTRODUCTION TO THE FOREIGN EXCHANGE MARKET DUKASCOPY BANK SA AN INTRODUCTION TO THE FOREIGN EXCHANGE MARKET DUKASCOPY BANK EDUCATIONAL GUIDE AN INTRODUCTION TO THE FOREIGN EXCHANGE MARKET www.dukascopy.com CONTENTS INTRODUCTION TO FOREX CURRENCY

More information

Senior Supervisors Group

Senior Supervisors Group Senior Supervisors Group Observations on Management of Recent Credit Default Swap Credit Events March 9, 2009 CANADA Office of the Superintendent of Financial Institutions SENIOR SUPERVISORS GROUP FRANCE

More information

Bendigo Foreign Exchange Contracts. Product Disclosure Statement.

Bendigo Foreign Exchange Contracts. Product Disclosure Statement. Product Disclosure Statement Bendigo Foreign Exchange Contracts. Product Disclosure Statement. 27 October 2014 1 About this document This Product Disclosure Statement (PDS) is an important document. It

More information

1. HOW DOES FOREIGN EXCHANGE TRADING WORK?

1. HOW DOES FOREIGN EXCHANGE TRADING WORK? XV. Important additional information on forex transactions / risks associated with foreign exchange transactions (also in the context of forward exchange transactions) The following information is given

More information

Derivative transaction reporting

Derivative transaction reporting REGULATORY GUIDE 251 Derivative transaction reporting February 2015 About this guide This guide is for reporting entities that are subject to the reporting obligations under the ASIC Derivative Transaction

More information

U.S. Dollar Index Contracts

U.S. Dollar Index Contracts U.S. Dollar Index Contracts FAQ June 2015 What is the Dollar Index? The U.S. Dollar Index is a geometrically-averaged calculation of six currencies weighted against the U.S. dollar. The U.S. Dollar Index

More information

The foreign exchange market is global, and it is conducted over-the-counter (OTC)

The foreign exchange market is global, and it is conducted over-the-counter (OTC) FOREIGN EXCHANGE BASICS TERMS USED IN FOREX TRADING: The foreign exchange market is global, and it is conducted over-the-counter (OTC) through the use of electronic trading platforms, or by telephone through

More information

SETTLEMENT RISK AND PAYMENT SOLUTIONS

SETTLEMENT RISK AND PAYMENT SOLUTIONS SETTLEMENT RISK AND PAYMENT SOLUTIONS Robert Toomey Expositor representante de la Reserva Federal de los Estados Unidos de Norteamérica. I. INTRODUCTION A. Importance of Payment Systems to Central Bank

More information

PRE-CONTRACT CREDIT INFORMATION (Standard European Consumer Credit Information) 22-24 Boulevard Royal, L-2449, Luxembourg. Revolving credit.

PRE-CONTRACT CREDIT INFORMATION (Standard European Consumer Credit Information) 22-24 Boulevard Royal, L-2449, Luxembourg. Revolving credit. PRE-CONTRACT CREDIT INFORMATION (Standard European Consumer Credit Information) 1. Contact details Creditor. Address. PayPal (Europe) S.à r.l. et Cie, S.C.A. Société en Commandite par Actions. 22-24 Boulevard

More information

CICERO BRIEFING: MONETARY AUTHORITY OF SINGAPORE REVIEWS REGULATION OF THE DERIVATIVES MARKET IN SINGAPORE

CICERO BRIEFING: MONETARY AUTHORITY OF SINGAPORE REVIEWS REGULATION OF THE DERIVATIVES MARKET IN SINGAPORE CICERO BRIEFING: MONETARY AUTHORITY OF SINGAPORE REVIEWS REGULATION OF THE DERIVATIVES MARKET IN SINGAPORE Introduction On February 13 the Monetary Authority of Singapore announced it is conducting a review

More information

Client Alert. Overview. Background. The Treasury Determination adds to a growing body of law applicable to foreign exchange derivatives.

Client Alert. Overview. Background. The Treasury Determination adds to a growing body of law applicable to foreign exchange derivatives. Number 1468 February 13, 2013 Client Alert Latham & Watkins Corporate Department Regulation of Foreign Currency Transactions: The Intersection of the Treasury Determination, Swaps Regulation and the Retail

More information

Regulatory Compliance for Energy and Commodity Companies

Regulatory Compliance for Energy and Commodity Companies TRIPLE POINT SOLUTION BRIEF Regulatory Compliance for Energy and Commodity Companies COMMODITY XL MEET REQUIREMENTS FOR DODD-FRANK AND EUROPEAN UNION LEGISLATION TRIPLE POINT TECHNOLOGY TPT.COM MARKET

More information

Working Group on U.S. RMB Trading and Clearing New York, January 2016. Discussion Outline: Possible RMB Clearing Operating Models

Working Group on U.S. RMB Trading and Clearing New York, January 2016. Discussion Outline: Possible RMB Clearing Operating Models Working Group on U.S. RMB Trading and Clearing New York, January 2016 Discussion Outline: Possible RMB Clearing Operating Models The purpose of this note to is to introduce possible RMB clearing operating

More information

FOREIGN EXCHANGE PRODUCT DISCLOSURE STATEMENT INTERACTIVE BROKERS LLC ARBN 091 191 141 AFSL 245 574

FOREIGN EXCHANGE PRODUCT DISCLOSURE STATEMENT INTERACTIVE BROKERS LLC ARBN 091 191 141 AFSL 245 574 FOREIGN EXCHANGE PRODUCT DISCLOSURE STATEMENT INTERACTIVE BROKERS LLC ARBN 091 191 141 AFSL 245 574 Date of Issue: 19 February 2014 INDEX 1. GENERAL INTRODUCTION 4 1.1 Important Information 4 1.2 Purpose

More information

Chapter 16: Financial Risk Management

Chapter 16: Financial Risk Management Chapter 16: Financial Risk Management Introduction Overview of Financial Risk Management in Treasury Interest Rate Risk Foreign Exchange (FX) Risk Commodity Price Risk Managing Financial Risk The Benefits

More information

DARRELL DUFFIE GRADUATE SCHOOL OF BUSINESS, STANFORD UNIVERSITY

DARRELL DUFFIE GRADUATE SCHOOL OF BUSINESS, STANFORD UNIVERSITY ON THE CLEARING OF FOREIGN EXCHANGE DERIVATIVES DARRELL DUFFIE GRADUATE SCHOOL OF BUSINESS, STANFORD UNIVERSITY This note discusses the case for exempting foreign exchange derivatives from recent regulatory

More information

U.S. DERIVATIVES REFORM (DODD-FRANK ACT, TITLE VII)

U.S. DERIVATIVES REFORM (DODD-FRANK ACT, TITLE VII) FREQUENTLY ASKED QUESTIONS U.S. DERIVATIVES REFORM (DODD-FRANK ACT, TITLE VII) INTERNAL USE ONLY Comprehensive information for Relationship Managers and other staff of Julius Baer Group September 2015

More information

INTRODUCTION TO FOREIGN EXCHANGE

INTRODUCTION TO FOREIGN EXCHANGE INTRODUCTION TO FOREIGN EXCHANGE Capademy Tutorial Series Option Banque Training Series Vol. 1 The foreign exchange market known as forex for short is the market in which currencies or sovereign money

More information

The Market for Foreign Exchange

The Market for Foreign Exchange The Market for Foreign Exchange Chapter Objective: 5 Chapter Five This chapter introduces the institutional framework within which exchange rates are determined. It lays the foundation for much of the

More information

Regulatory Updates. 2015 MCT Guideline (Draft) and other regulatory reporting changes

Regulatory Updates. 2015 MCT Guideline (Draft) and other regulatory reporting changes Regulatory Updates 2015 MCT Guideline (Draft) and other regulatory reporting changes Agenda 1. Draft 2015 MCT Guideline i. Conceptual changes ii. Significant changes and additions Capital available Capital

More information

1. WHY WE NEED FOREIGN EXCHANGE 2. WHAT FOREIGN EXCHANGE MEANS 3. ROLE OF THE EXCHANGE RATE. 9 The Foreign Exchange Market in the United States

1. WHY WE NEED FOREIGN EXCHANGE 2. WHAT FOREIGN EXCHANGE MEANS 3. ROLE OF THE EXCHANGE RATE. 9 The Foreign Exchange Market in the United States CHAPTER 2 1. WHY WE NEED FOREIGN EXCHANGE Almost every nation has its own national currency or monetary unit its dollar, its peso, its rupee used for making and receiving payments within its own borders.

More information