International Finance

Save this PDF as:

Size: px
Start display at page:

Download "International Finance"

Transcription

1 International Finance 7 e édition Christophe Boucher 1

2 Session 1 7 e édition The foreign exchange market and some stylized facts 2

3 Roadmap 1. Geographical Extent 2. Size 3. Functions 4. Participants 5. Transactions 6. Quotations and cross rates 7. Basics 8. Stylized facts 3

4 Introduction The foreign exchange market provides the physical and institutional structure through which the money of one country is exchanged for that of another country, the rate of exchange between currencies is determined, and foreign exchange transactions are physically completed. A foreign exchange transaction is an agreement between a buyer and a seller that a given amount of one currency is to be delivered at a specified rate for some other currency. 4

5 Roadmap 1. Geographical Extent 2. Size 3. Functions 4. Participants 5. Transactions 6. Quotations and cross rates 7. Basics 8. Stylized facts 5

6 Geographical Extent Geographically, the foreign exchange market spans the globe, with prices moving and currencies traded somewhere every hour of every business day. The market is deepest, or most liquid, early in the European afternoon, when the markets of both Europe and the U.S. East coast are open. The market is thinnest at the end of the day in California, when traders in Tokyo and Hong Kong are just getting up for the next day. 6

7 Geographical Extent 24h opening 7

8 Geographical Extent The Market clock 8

9 Concentration (1) Main market places in the World 9

10 Roadmap 1. Geographical Extent 2. Size 3. Functions 4. Participants 5. Transactions 6. Quotations and cross rates 7. Basics 8. Stylized facts 10

11 Size In 2013, the daily volume of trading on the foreign exchange market and its satellites (futures, options, and swaps) at more than USD 5 trillion (10 times the daily volume of international trade in goods and services). The US dollar remained the dominant vehicle currency (87% of all trades). The euro was the second most traded currency (33%). Several emerging market currencies, and the Mexican peso and Chinese renminbi entered the list of the top 10 most traded currencies. Trading is increasingly concentrated in the largest financial centres. Sales desks in the UK, US, Singapore and Japan intermediated 71% of foreign exchange trading, whereas in April 2010 their combined share was 66%. 11

12 Size 12

13 Size 13

14 Relative size Relative size to GDP, eq. turnover and gross trade flows 14

15 Concentration (2) Main currencies 15

16 Concentration (2) Major Currencies 16

17 Products Turnover 17

18 Roadmap 1. Geographical Extent 2. Size 3. Functions 4. Participants 5. Transactions 6. Quotations and cross rates 7. Basics 8. Stylized facts 18

19 To what? Transfer of Purchasing Power: Transfer of purchasing power is necessary because international transactions normally involve parties in countries with different national currencies. Each party usually wants to deal in its own currency, but the transaction can be invoiced in only one currency. Provision of Credit: Because the movement of goods between countries takes time, inventory in transit must be financed. Minimizing Foreign Exchange Risk: The foreign exchange market provides "hedging" facilities for transferring foreign exchange risk to someone else. Speculate: trading in a fair game or zero-sum-game (see below) 19

20 Roadmap 1. Geographical Extent 2. Size 3. Functions 4. Participants 5. Transactions 6. Quotations and cross rates 7. Basics 8. Stylized facts 20

21 Two faces of a global market The foreign exchange market consists of two tiers: the interbank or wholesale market, and the client or retail market. Individual transactions in the interbank market usually involve large sums that are multiples of a million USD or the equivalent value in other currencies. By contrast, contracts between a bank and its client are usually for specific amounts, sometimes down to the last penny. 21

22 Foreign Exchange Dealers: Banks, and a few nonbank foreign exchange dealers, operate in both the interbank and client markets. They profit from buying foreign exchange at a bid price and reselling it at a slightly higher ask price. Worldwide competitions among dealers narrows the spread between bid and ask and so contributes to making the foreign exchange market efficient in the same sense as securities markets. Dealers in the foreign exchange departments of large international banks often function as market makers. They stand willing to buy and sell those currencies in which they specialize by maintaining an inventory position in those currencies. 22

23 Commercial and Investment Transactions Importers and exporters, international portfolio investors, multinational firms, tourists, and others use the foreign exchange market to facilitate execution of commercial or investment transactions. Some of these participants use the foreign exchange market to hedge foreign exchange risk. 23

24 Speculators and Arbitragers Speculators and arbitragers seek to profit from trading in the market. They operate in their own interest, without a need or obligation to serve clients or to ensure a continuous market. Speculators seek all of their profit from exchange rate changes. Arbitragers try to profit from simultaneous exchange rate differences in different markets. 24

25 Central Banks and Treasuries Central banks and treasuries use the market to acquire or spend their country's foreign exchange reserves as well as to influence the price at which their own currency is traded. In many instances they do best when they willingly take a loss on their foreign exchange transactions. As willing loss takers, central banks and treasuries differ in motive and behavior form all other market participants. 25

26 Foreign Exchange Brokers Foreign exchange brokers are agents who facilitate trading between dealers without themselves becoming principals in the transaction. For this service, they charge a small commission, and maintain access to hundreds of dealers worldwide via open communication lines. It is a broker's business to know at any moment exactly which dealers want to buy or sell any currency. This knowledge enables the broker to find a counterpart for a client quickly without revealing the identity of either party until after an agreement has been reached. 26

27 Roadmap 1. Geographical Extent 2. Size 3. Functions 4. Participants 5. Transactions 6. Quotations and cross rates 7. Basics 8. Stylized facts 27

28 Spot Transactions A spot transaction requires almost immediate delivery of foreign exchange. In the interbank market, a spot transaction involves the purchase of foreign exchange with delivery and payment between banks to take place, normally, on the second following business day. The date of settlement is referred to as the "value date." Spot transactions are the most important single type of transaction (43 % of all transactions). 28

29 Outright Forward Transactions A forward transaction requires delivery at a future value date of a specified amount of one currency for a specified amount of another currency. The exchange rate to prevail at the value date is established at the time of the agreement, but payment and delivery are not required until maturity. Forward exchange rates are normally quoted for value dates of one, two, three, six, and twelve months. Actual contracts can be arranged for other lengths. Outright forward transactions only account for about 9 % of all foreign exchange transactions. 29

30 Forwards 30

31 Swap Transactions A swap transaction involves the simultaneous purchase and sale of a given amount of foreign exchange for two different value dates. The most common type of swap is a spot against forward, where the dealer buys a currency in the spot market and simultaneously sells the same amount back to the same back in the forward market. Since this agreement is executed as a single transaction, the dealer incurs no unexpected foreign exchange risk. Swap transactions account for about 48 % of all foreign exchange transactions. 31

32 Derivatives 32

33 Derivatives FX Options et Volatility 33

34 Roadmap 1. Geographical Extent 2. Size 3. Functions 4. Participants 5. Transactions 6. Quotations and cross rates 7. Basics 8. Stylized facts 34

35 Quotes A foreign exchange rate is the price of a foreign currency. A foreign exchange quotation or quote is a statement of willingness to buy or sell at an announced rate. 35

36 European / American quotes The most common way that dealers and brokers state foreign exchange quotations, and the way they appear on all computer trading screens worldwide, is called European terms. The European terms quote shows the number of units of foreign currency needed to purchase one USD: CAD / USD or 1 USD = CAD (USD au certain / CAD à l incertain ) or direct quote of the USD An alternative method is called the American terms. The American terms quote shows the number of units of USD needed to purchase one unit of foreign currency: USD / CAD or 1 CAD = USD (CAD au certain / USD à l incertain ) or indirect quote of the USD 1 CAD/USD = 1 / USD/CAD 36

37 Bid and Ask Quotations A bid is the exchange rate in one currency at which a dealer will buy another currency An ask is the exchange rate at which a dealer will sell the other currency. Dealers buy at the bid price and sell at the ask price, profiting from the spread between the bid and ask prices: bid < ask. 37

38 Bid and Ask Quotations A dealer provides you the following quote: USD / CAD. This suggests that the bid price for the CAD is USD /CAD and that the ask price is USD / CAD. The indirect version of this quote would be CAD /USD The spread between bid and ask prices exists for two reasons: 1. Transaction costs and dealers as financial intermediaries 2. Profits. 38

39 Example of quotes Bid-ask 39

40 Example of quotes Best bid-ask 40

41 Example of quotes Bid, Ask, High, Low, Open 41

42 The Law of One Price and Cross Rates The law of one price states that homogenous goods and assets should have the same price everywhere (efficient markets and free trade). Cross Rates: Many currency pairs are only inactively traded, so their exchange rate is determined through their relationship to a widely traded third currency (generally the USD): Example of quotations: Thai Baht: THB /USD Barbados Dollars: BBD /USD The cross rate is THB/BBD is: THB / BBD 42

43 Effective exchange rates Effective exchange rates (or Trade weighted indexes) are calculated as (geometric) weighted averages of bilateral exchange rates. The weighting pattern is time-varying and based on trades See eg Various definitions depending on on the number of bilateral ER considered (Main / Narrow / Broad) The BIS considers: Broad indices comprising 61 economies Narrow indices comprising 26 economies 43

44 Real exchange rates The Real Exchange Rate (RER) between two currencies is the product of the monial exchange rate and the ratio of prices between the two countries RER = e x P*/P (à l incertain) where e is the EURUSD (an indirect quote of the USD: 1 EUR = e USD) P* the average price of good in the euro area P the average price of good in the US BIG Mac Example: e = 1.08 / BM price at Paris = 2.5 / at NY = 3.4$ RER = 1.08 x (2.5/3.4) = 0.79 Misalignments measures: where do you buy your BM? EUR or USD is undervalued? 44

45 PPP Big Mac Latte Ikea Billy Apple Ipod Etc. 45

46 PPP Big Mac Latte Ikea Billy Apple Ipod Etc. 46

47 PPP Big Mac Latte Ikea Billy Apple Ipod Etc. 47

48 Roadmap 1. Geographical Extent 2. Size 3. Functions 4. Participants 5. Transactions 6. Quotations and cross rates 7. Basics 8. Stylized facts 48

49 Basics Appreciation and Depreciation of Exchange Rates If one currency buys more of another currency, we say it has experienced an appreciation its value has risen, appreciated, or strengthened If a currency buys less of another currency, we say it has experienced a depreciation its value has fallen, depreciated, or weakened 49

50 Basics Exchange Rate Regimes: Fixed versus Floating There are different patterns of exchange rate behavior, known as exchange rate regimes These regimes reflect choices made by governments There are two polar regime types: fixed (or pegged) and floating (or flexible) 50

51 Basics Bounds for Russian Ruble Nominal Exchange Rate 51

52 Basics Exchange Rate Behavior: Selected Developed Countries,

53 Roadmap 1. Geographical Extent 2. Size 3. Functions 4. Participants 5. Transactions 6. Quotations and cross rates 7. Basics 8. Stylized facts 53

54 Stylized facts Random walk behavior Non-autocorrelation of returns Instability in the short-term (high frequency) and in the longterm (low frequency) Volatility clusters (autocorrelation of absolute returns) Non-Gaussian returns at high frequencies (fat tails) Jumps Crises Non-linear persistent mean-reverting of RER 54

55 Stylized facts High low-frequency movements with floating XR 2 EUR USD 1,8 1,6 1,4 1,2 1 0,8 0, Sources: Datastream, daily data from 01/01/1958 to 17/07/2015. Computations by the author. 55

56 Stylized facts Volatile high-frequency XR returns and time-varying volatility 6% 1 day returns 4% 2% 0% -2% -4% -6% Sources: Datastream, daily data from 01/01/1958 to 17/07/2015. Computations by the author. 56

57 Stylized facts Volatile intermediate-frequency XR returns 15% 5 day returns 10% 5% 0% -5% -10% Sources: Datastream, daily data from 01/01/1958 to 17/07/2015. Computations by the author. 57

58 Stylized facts Volatile intermediate-frequency XR returns 20% 1 month returns 15% 10% 5% 0% -5% -10% -15% -20% Sources: Datastream, daily data from 01/01/1958 to 17/07/2015. Computations by the author. 58

59 Stylized facts Volatile intermediate-frequency XR returns 20% 3 month returns 15% 10% 5% 0% -5% -10% -15% -20% -25% Sources: Datastream, daily data from 01/01/1958 to 17/07/2015. Computations by the author. 59

60 Volatile low-frequency XR returns Stylized facts 40% 1 Year returns 30% 20% 10% 0% -10% -20% -30% Sources: Datastream, daily data from 01/01/1958 to 17/07/2015. Computations by the author. 60

61 Stylized facts Volatility clusters / autocorrelation of squared returns ( ) 0,0025 Squared returns 0,002 0,0015 0,001 0, Sources: Datastream, daily data from 01/01/1958 to 17/07/2015. Computations by the author. 61

62 Stylized facts Volatility clusters / autocorrelation of squared returns ( ) 0,25% Squared returns 0,20% 0,15% 0,10% 0,05% 0,00% Sources: Datastream, daily data from 01/01/1958 to 17/07/2015. Computations by the author. 62

63 Stylized facts Shape of the distribution is not the same at different time scales Sources: Datastream, daily data from 01/01/1958 to 17/07/2015. Computations by the author. 63

64 Stylized facts Heavy tails (but precise form of the tails difficult to determine) and aggregational Gaussianity Sources: Datastream, daily data from 01/01/1958 to 17/07/2015. Computations by the author. 64

65 Stylized facts Jumps at high frequency (intra-day) 65

66 Stylized facts Crises (Asian ) Philippines NBPH Thailand NBTH Malaysia NBMY Indonesia NBID (right) Sources: BIS, monthly data from 1994 to Computations by the author. 66

67 Stylized facts Crises (Russia 1998/1999 Argentina 2001/2002)) Russia NBRU 500 Argentina NBAR Sources: BIS, monthly data from 1994 to Computations by the author. 67

68 Stylized facts Emerging pseudo-crises (Spring-Summer 2013 on the Taper tantrum) May-July 2013 XR depreciations -14,6% -13,1% -11,6% -10,4% -10,0% -8,5% -6,8% -6,3% -6,0% -5,1% -4,9% -4,8% -4,7% -4,5% -4,0% -3,8% -3,0% -2,6% -1,5% -1,3% -1,2% -1,0% -0,6% -0,3% 0,0% India Indonesia Turkey Brazil Australia South Africa Thailand Mexico Argentina Chile Malaysia Philippines Peru Russia Algeria Norway Colombia Iceland New Zealand Canada Poland Sweden Japan Romania Singapore -16% -14% -12% -10% -8% -6% -4% -2% 0% Sources: BIS, monthly data from 1994 to Computations by the author. 68

69 Stylized facts What moves FX markets? 69

70 Stylized facts 70

71 Stylized facts See also (Eichengreen and Bordo, 2002) Speculative attacks on currencies in the European Exchange Rate Mechanism in Mexican crisis ( Tequila crisis) in 1994 Iceland in 2008 Sources: BIS, monthly data from 1994 to Computations by the author. 71

72 Stylized facts Persistent RER (mean-reverting? Non-linear?) Euro area RBXM Japan RBJP 70 United Kingdom RBGB United States RBUS Sources: BIS, monthly data from 1994 to Computations by the author. 72

73 Stylized facts Persistent RER (mean-reverting? Non-linear?) Greece RBGR Italy RBIT 85 Spain RBES Portugal RBPT Sources: BIS, monthly data from 1994 to Computations by the author. 73

74 See you next week. 74

3. The Foreign Exchange Market

3. The Foreign Exchange Market 3. The Foreign Exchange Market The foreign exchange market provides the physical and institutional structure through which the money of one country is exchanged for that of another country, the rate of

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

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

Chapter 4 - The Foreign Exchange Market. Functions of the FX Market

Chapter 4 - The Foreign Exchange Market. Functions of the FX Market Chapter 4 - The Foreign Exchange Market Market Structure and Roles Volume and distribution by Country, Currencies Who trades with Whom Introduction to different kinds of Foreign Exchange contracts Spot,

More information

International Financial Markets. The spot market for foreign exchange

International Financial Markets. The spot market for foreign exchange Lecture Notes for 15.436 International Financial Markets Chapter 2 The spot market for foreign exchange Fall 1999 Raman Uppal 2-2 International Finance: Chapter 2 Spot exchange market Fall 1999 Road Map

More information

International Finance Prof. A. K. Misra Department of Management Indian Institute of Technology, Kharagpur

International Finance Prof. A. K. Misra Department of Management Indian Institute of Technology, Kharagpur International Finance Prof. A. K. Misra Department of Management Indian Institute of Technology, Kharagpur Lecture - 7 Features of Foreign Exchange Market Good morning, today we will discuss features of

More information

Foreign Exchange Market INTERNATIONAL FINANCE. Function and Structure of FX Market. Market Characteristics. Market Attributes. Trading in Markets

Foreign Exchange Market INTERNATIONAL FINANCE. Function and Structure of FX Market. Market Characteristics. Market Attributes. Trading in Markets Foreign Exchange Market INTERNATIONAL FINANCE Chapter 5 Encompasses: Conversion of purchasing power across currencies Bank deposits of foreign currency Credit denominated in foreign currency Foreign trade

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

BANK FOR INTERNATIONAL SETTLEMENTS P.O. BOX, 4002 BASLE, SWITZERLAND

BANK FOR INTERNATIONAL SETTLEMENTS P.O. BOX, 4002 BASLE, SWITZERLAND BANK FOR INTERNATIONAL SETTLEMENTS P.O. BOX, 4002 BASLE, SWITZERLAND PRESS RELEASE CENTRAL BANK SURVEY OF FOREIGN EXCHANGE AND DERIVATIVES MARKET ACTIVITY IN APRIL 1998: PRELIMINARY GLOBAL DATA The BIS

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

FACT SHEET Global Direct Selling

FACT SHEET Global Direct Selling Global 2011 Global Retail Sales: USD $153,727 million Global Sales Force The 91.5 million Direct Sellers who represent companies around the world are: 3 2 16% 9% 2% 3% 2% 3% 2% 3% Care 42% 2% 56% 3% 2

More information

Best Times to Trade Forex

Best Times to Trade Forex Best Times to Trade Forex The Forex Market The forex market is the largest financial market in the world, trading around $3.1 trillion each day. (Every three years, the Bank of International Settlements

More information

BEST TIMES TO TRADE THE FOREX MARKET

BEST TIMES TO TRADE THE FOREX MARKET BEST TIMES TO TRADE THE FOREX MARKET The forex market is the largest financial market in the world, trading around $3.1 trillion each day. (Every three years, the Bank of International Settlements (BIS)

More information

Assignment 10 (Chapter 11)

Assignment 10 (Chapter 11) Assignment 10 (Chapter 11) 1. Which of the following tends to cause the U.S. dollar to appreciate in value? a) An increase in U.S. prices above foreign prices b) Rapid economic growth in foreign countries

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

Reporting practices for domestic and total debt securities

Reporting practices for domestic and total debt securities Last updated: 4 September 2015 Reporting practices for domestic and total debt securities While the BIS debt securities statistics are in principle harmonised with the recommendations in the Handbook on

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

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

Consumer Credit Worldwide at year end 2012

Consumer Credit Worldwide at year end 2012 Consumer Credit Worldwide at year end 2012 Introduction For the fifth consecutive year, Crédit Agricole Consumer Finance has published the Consumer Credit Overview, its yearly report on the international

More information

Seminar. Global Foreign Exchange Markets Chapter 9. Copyright 2013 Pearson Education. 20 Kasım 13 Çarşamba

Seminar. Global Foreign Exchange Markets Chapter 9. Copyright 2013 Pearson Education. 20 Kasım 13 Çarşamba Seminar Global Foreign Exchange Markets Chapter 9 9- Learning Objectives To learn the fundamentals of foreign exchange To identify the major characteristics of the foreign-exchange market and how governments

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

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

Foreign Taxes Paid and Foreign Source Income INTECH Global Income Managed Volatility Fund

Foreign Taxes Paid and Foreign Source Income INTECH Global Income Managed Volatility Fund Income INTECH Global Income Managed Volatility Fund Australia 0.0066 0.0375 Austria 0.0045 0.0014 Belgium 0.0461 0.0138 Bermuda 0.0000 0.0059 Canada 0.0919 0.0275 Cayman Islands 0.0000 0.0044 China 0.0000

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

International Securities Trading now you can invest across the world

International Securities Trading now you can invest across the world International Securities Trading now you can invest across the world INTERNATIONAL SECURITIES TRADING iii CONTENTS Welcome 2 Trade international securities with CommSec and Pershing 2 International trading

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

INTERNATIONAL SECURITIES TRADING NOW YOU CAN INVEST ACROSS THE WORLD

INTERNATIONAL SECURITIES TRADING NOW YOU CAN INVEST ACROSS THE WORLD INTERNATIONAL SECURITIES TRADING NOW YOU CAN INVEST ACROSS THE WORLD YOU ARE WHAT YOU DO INTERNATIONAL SECURITIES TRADING III CONTENTS CONTENTS Welcome Welcome 1 2 Trade international securities with

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

J. Gaspar: Adapted from Jeff Madura International Financial Management

J. Gaspar: Adapted from Jeff Madura International Financial Management Chapter3 International Financial Markets J. Gaspar: Adapted from Jeff Madura International Financial Management 3-1 International Financial Markets Can be segmented as follows: 1.The Foreign Exchange Market

More information

Understanding World Currencies and Exchange Rates

Understanding World Currencies and Exchange Rates Understanding World Currencies and Exchange Rates Contents Currencies Exchange Rates Exchange Rate Movements Interpreting Numerical Exchange Rate Movements How Foreign Exchange Markets Work Why Exchange

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 MARKET FOR FOREIGN EXCHANGE SUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTER QUESTIONS AND PROBLEMS

CHAPTER 5 THE MARKET FOR FOREIGN EXCHANGE SUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTER QUESTIONS AND PROBLEMS CHAPTER 5 THE MARKET FOR FOREIGN EXCHANGE SUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTER QUESTIONS AND PROBLEMS QUESTIONS 1. Give a full definition of the market for foreign exchange. Answer: Broadly

More information

Foreign Exchange markets and international monetary arrangements

Foreign Exchange markets and international monetary arrangements Foreign Exchange markets and international monetary arrangements Ruichang LU ( 卢 瑞 昌 ) Department of Finance Guanghua School of Management Peking University Some issues on the course arrangement Professor

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

Currency Options. www.m-x.ca

Currency Options. www.m-x.ca Currency Options www.m-x.ca Table of Contents Introduction...3 How currencies are quoted in the spot market...4 How currency options work...6 Underlying currency...6 Trading unit...6 Option premiums...6

More information

The Determinants of Global Factoring By Leora Klapper

The Determinants of Global Factoring By Leora Klapper The Determinants of Global Factoring By Leora Klapper Factoring services can be traced historically to Roman times. Closer to our own era, factors arose in England as early as the thirteenth century, as

More information

Execution methods in foreign exchange markets 1

Execution methods in foreign exchange markets 1 Paola Gallardo Alexandra Heath paola.gallardo@bis.org heatha@bis.org Execution methods in foreign exchange markets 1 Over the past decade or so, the spread of electronic trading has brought about significant

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

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 Role of Banks in Global Mergers and Acquisitions by James R. Barth, Triphon Phumiwasana, and Keven Yost *

The Role of Banks in Global Mergers and Acquisitions by James R. Barth, Triphon Phumiwasana, and Keven Yost * The Role of Banks in Global Mergers and Acquisitions by James R. Barth, Triphon Phumiwasana, and Keven Yost * There has been substantial consolidation among firms in many industries in countries around

More information

Appendix 1: Full Country Rankings

Appendix 1: Full Country Rankings Appendix 1: Full Country Rankings Below please find the complete rankings of all 75 markets considered in the analysis. Rankings are broken into overall rankings and subsector rankings. Overall Renewable

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

BT Premium Event Call and Web Rate Card

BT Premium Event Call and Web Rate Card BT Managed Event and BT Self-Managed Event (also referred to as Express, Plus and Premium) Conference Bridge and Call for Booked Audio Conferencing Services will comprise the following for each phone-conference:

More information

Introduction to Exchange Rates and the Foreign Exchange Market

Introduction to Exchange Rates and the Foreign Exchange Market Introduction to Exchange Rates and the Foreign Exchange Market 2 1. Refer to the exchange rates given in the following table. Today One Year Ago June 25, 2010 June 25, 2009 Country Per $ Per Per Per $

More information

Currency Derivatives Guide

Currency Derivatives Guide Currency Derivatives Guide What are Futures? In finance, a futures contract (futures) is a standardised contract between two parties to buy or sell a specified asset of standardised quantity and quality

More information

Practice Set and Solutions #1

Practice Set and Solutions #1 Bo Sjö 2012-10-03 Practice Set and Solutions #1 What to do with this practice set? 1 Practice sets are handed out to help students master the material of the course and prepare for the final exam. These

More information

AN AUGMENTED TRADE-WEIGHTED INDEX OF THE AUSTRALIAN DOLLAR 1

AN AUGMENTED TRADE-WEIGHTED INDEX OF THE AUSTRALIAN DOLLAR 1 AN AUGMENTED TRADE-WEIGHTED INDEX OF THE AUSTRALIAN DOLLAR 1 Introduction Trade-weighted exchange rate indices provide a guide to a country s exchange rate against the currencies of its trading partners,

More information

THE UPDATE OF THE EURO EFFECTIVE EXCHANGE RATE INDICES

THE UPDATE OF THE EURO EFFECTIVE EXCHANGE RATE INDICES September 2004 THE UPDATE OF THE EURO EFFECTIVE EXCHANGE RATE INDICES Executive summary In September 2004, the European Central Bank (ECB) has updated the overall trade weights underlying the ECB nominal

More information

An Overview of Offshore RMB Market. Nov 2013

An Overview of Offshore RMB Market. Nov 2013 An Overview of Offshore RMB Market Nov 2013 Contents 1. Outlook of RMB Internationalisation 2. Implications for Offshore RMB Bonds 2 Section 1 Outlook of RMB Internationalisation 3 RMB The next international

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

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

University of Economics Prague Department of International Trade. International Financial Strategies. Content: 1. Foreign Exchange Markets

University of Economics Prague Department of International Trade. International Financial Strategies. Content: 1. Foreign Exchange Markets University of Economics Prague Department of International Trade Josef Taušer Associate Professor Office Hours: See ISIS Email: tauser@vse.cz 1 International Financial Strategies Content: 1. Foreign Exchange

More information

Glossary of Forex (Foreign Exchange) Terminology

Glossary of Forex (Foreign Exchange) Terminology Glossary of Forex (Foreign Exchange) Terminology A Aggregate Demand - The sum of government spending, personal consumption expenditures, and business expenditures. Appreciation - A currency is said to

More information

CHICAGO STOCK EXCHANGE, INC. MARKET REGULATION DEPARTMENT INFORMATION CIRCULAR. RE: ishares CURRENCY HEDGED MSCI ETFS TO BEGIN TRADING ON CHX

CHICAGO STOCK EXCHANGE, INC. MARKET REGULATION DEPARTMENT INFORMATION CIRCULAR. RE: ishares CURRENCY HEDGED MSCI ETFS TO BEGIN TRADING ON CHX July 2, 2015 ETF-015-073 CHICAGO STOCK EXCHANGE, INC. MARKET REGULATION DEPARTMENT INFORMATION CIRCULAR RE: ishares CURRENCY HEDGED MSCI ETFS TO BEGIN TRADING ON CHX Pursuant to Information Circular MR

More information

CAN INVESTORS PROFIT FROM DEVALUATIONS? THE PERFORMANCE OF WORLD STOCK MARKETS AFTER DEVALUATIONS. Bryan Taylor

CAN INVESTORS PROFIT FROM DEVALUATIONS? THE PERFORMANCE OF WORLD STOCK MARKETS AFTER DEVALUATIONS. Bryan Taylor CAN INVESTORS PROFIT FROM DEVALUATIONS? THE PERFORMANCE OF WORLD STOCK MARKETS AFTER DEVALUATIONS Introduction Bryan Taylor The recent devaluations in Asia have drawn attention to the risk investors face

More information

World Consumer Income and Expenditure Patterns

World Consumer Income and Expenditure Patterns World Consumer Income and Expenditure Patterns 2014 14th edi tion Euromonitor International Ltd. 60-61 Britton Street, EC1M 5UX TableTypeID: 30010; ITtableID: 22914 Income Algeria Income Algeria Income

More information

The Case for International Fixed Income

The Case for International Fixed Income The Case for International Fixed Income June 215 Introduction Investing in fixed-income securities outside of the United States is often perceived as a riskier strategy than deploying those assets domestically,

More information

Exchange Rates. Costas Arkolakis teaching fellow: Federico Esposito. January 2014. Economics 407, Yale

Exchange Rates. Costas Arkolakis teaching fellow: Federico Esposito. January 2014. Economics 407, Yale Exchange Rates Costas Arkolakis teaching fellow: Federico Esposito Economics 407, Yale January 2014 Outline De nitions: Nominal and Real Exchange Rate A Theory of Determination of the Real Exchange Rate

More information

Getting Started With Forex Trading: A Forex Primer. Member NASD, NYSE, SIPC, and NFA

Getting Started With Forex Trading: A Forex Primer. Member NASD, NYSE, SIPC, and NFA Getting Started With Forex Trading: A Forex Primer Member NASD, NYSE, SIPC, and NFA 1 Important Information and Disclaimer: TradeStation Securities, Inc. seeks to serve institutional and active traders.

More information

CONSIDERATIONS WHEN CONSTRUCTING A FOREIGN PORTFOLIO: AN ANALYSIS OF ADRs VS ORDINARIES

CONSIDERATIONS WHEN CONSTRUCTING A FOREIGN PORTFOLIO: AN ANALYSIS OF ADRs VS ORDINARIES THE APERIO DIFFERENCE. Authors Michael Branch, CFA Ran Leshem CONSIDERATIONS WHEN CONSTRUCTING A FOREIGN PORTFOLIO: AN ANALYSIS OF ADRs VS ORDINARIES U.S. investors can capture international equity exposure

More information

CHAPTER 12 CHAPTER 12 FOREIGN EXCHANGE

CHAPTER 12 CHAPTER 12 FOREIGN EXCHANGE CHAPTER 12 CHAPTER 12 FOREIGN EXCHANGE CHAPTER OVERVIEW This chapter discusses the nature and operation of the foreign exchange market. The chapter begins by describing the foreign exchange market and

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

CommSeC CFDS: IntroDuCtIon to FX

CommSeC CFDS: IntroDuCtIon to FX CommSec CFDs: Introduction to FX Important Information This brochure has been prepared without taking account of the objectives, financial and taxation situation or needs of any particular individual.

More information

List of tables. I. World Trade Developments

List of tables. I. World Trade Developments List of tables I. World Trade Developments 1. Overview Table I.1 Growth in the volume of world merchandise exports and production, 2010-2014 39 Table I.2 Growth in the volume of world merchandise trade

More information

Global Media Report. Global Industry Overview

Global Media Report. Global Industry Overview Global Media Report 203 Global Industry Overview McKinsey & Company Global Media Report 203 McKinsey & Company s Global Media and Entertainment Practice Never before has an integrated view across the media

More information

Access the world. with Schwab Global Investing Services

Access the world. with Schwab Global Investing Services Access the world with Schwab Global Investing Services 78% of developed country equity market growth between 2000 and 2012 came from outside the U.S. 1 60% of developed country stock market capitalization

More information

High Income Fund, Inc.[NYSE: AWF] (the "Fund") today released its monthly portfolio update as of April 30, 2013.

High Income Fund, Inc.[NYSE: AWF] (the Fund) today released its monthly portfolio update as of April 30, 2013. News Release FOR IMMEDIATE RELEASE Contacts: Shareholder Contact: 1-800-221-5672 AllianceBernstein Global High Income Fund RELEASES MONTHLY PORTFOLIO UPDATE New York, NY, May 28, 2013 - AllianceBernstein

More information

MGE#12 The Balance of Payments

MGE#12 The Balance of Payments MGE#12 The Balance of Payments The Current Account, the Capital Account and the Balance of Payments Introduction to the Foreign Exchange Market Savings, Investment and the Current Account 1 From last session

More information

High Income Fund, Inc.[NYSE: AWF] (the "Fund") today released its monthly portfolio update as of June 30, 2013.

High Income Fund, Inc.[NYSE: AWF] (the Fund) today released its monthly portfolio update as of June 30, 2013. News Release FOR IMMEDIATE RELEASE Contacts: Shareholder Contact: 1-800-221-5672 AllianceBernstein Global High Income Fund RELEASES MONTHLY PORTFOLIO UPDATE New York, NY, July 30, 2013 - AllianceBernstein

More information

2015 Country RepTrak The World s Most Reputable Countries

2015 Country RepTrak The World s Most Reputable Countries 2015 Country RepTrak The World s Most Reputable Countries July 2015 The World s View on Countries: An Online Study of the Reputation of 55 Countries RepTrak is a registered trademark of Reputation Institute.

More information

International Monetary Policy Transmission Előd Takáts and Abraham Vela Bank for International Settlements. BIS Papers No 78. Carl Musozya.

International Monetary Policy Transmission Előd Takáts and Abraham Vela Bank for International Settlements. BIS Papers No 78. Carl Musozya. International Monetary Policy Transmission Előd Takáts and Abraham Vela Bank for International Settlements. BIS Papers No 78 Carl Musozya. Introduction. Effects of advanced economy monetary policy on the

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 CEMLA Roundtable on Fiscal Policy, public debt management and government bond markets: issues for central banks

BIS CEMLA Roundtable on Fiscal Policy, public debt management and government bond markets: issues for central banks BIS CEMLA Roundtable on Fiscal Policy, public debt management and government bond markets: issues for central banks Is monetary policy constrained by fiscal policy? by Carlos Montoro 26-27 November 212

More information

The European Central Bank s Minimum Bid Rate and Its Effect on Major Currency Pairs

The European Central Bank s Minimum Bid Rate and Its Effect on Major Currency Pairs The European Central Bank s Minimum Bid Rate and Its Effect on Major Currency Pairs Ikhlaas Gurrib Abstract The paper looks at the effects of Minimum Bid Rate on three major currency pairs namely the Australian

More information

Verdict Financial: Wealth Management. Data Collection and Forecasting Methodologies

Verdict Financial: Wealth Management. Data Collection and Forecasting Methodologies Verdict Financial: Wealth Management Data Collection and Forecasting Methodologies April 2014 Contents Global Wealth Markets Methodology Methodology Methodology 2 Global Wealth Markets Section 1: Global

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

EXTERNAL DEBT AND LIABILITIES OF INDUSTRIAL COUNTRIES. Mark Rider. Research Discussion Paper 9405. November 1994. Economic Research Department

EXTERNAL DEBT AND LIABILITIES OF INDUSTRIAL COUNTRIES. Mark Rider. Research Discussion Paper 9405. November 1994. Economic Research Department EXTERNAL DEBT AND LIABILITIES OF INDUSTRIAL COUNTRIES Mark Rider Research Discussion Paper 9405 November 1994 Economic Research Department Reserve Bank of Australia I would like to thank Sally Banguis

More information

Investing in International Financial Markets

Investing in International Financial Markets APPENDIX 3 Investing in International Financial Markets http:// Visit http://money.cnn.com for current national and international market data and analyses. The trading of financial assets (such as stocks

More information

Global Insurance and Lending Market Data: Size, Segmentation and Forecast for Worldwide Markets

Global Insurance and Lending Market Data: Size, Segmentation and Forecast for Worldwide Markets Global Insurance and Lending Market Data: Size, Segmentation and Forecast for Worldwide Markets Accident and health insurance commercial non-life insurance consumer lending life insurance and retirement

More information

Evolution of Forex the Active Trader s Market

Evolution of Forex the Active Trader s Market Evolution of Forex the Active Trader s Market The practice of trading currencies online has increased threefold from 2002 to 2005, and the growth curve is expected to continue. Forex, an abbreviation for

More information

THE LOW INTEREST RATE ENVIRONMENT AND ITS IMPACT ON INSURANCE MARKETS. Mamiko Yokoi-Arai

THE LOW INTEREST RATE ENVIRONMENT AND ITS IMPACT ON INSURANCE MARKETS. Mamiko Yokoi-Arai THE LOW INTEREST RATE ENVIRONMENT AND ITS IMPACT ON INSURANCE MARKETS Mamiko Yokoi-Arai Current macro economic environment is of Low interest rate Low inflation and nominal wage growth Slow growth Demographic

More information

OCTOBER 2010. Russell-Parametric Cross-Sectional Volatility (CrossVol ) Indexes Construction and Methodology

OCTOBER 2010. Russell-Parametric Cross-Sectional Volatility (CrossVol ) Indexes Construction and Methodology OCTOBER 2010 Russell-Parametric Cross-Sectional Volatility (CrossVol ) Indexes Construction and Methodology SEPTEMBER 2010 Russell-Parametric Cross-Sectional Volatility (CrossVol) Indexes Construction

More information

Liquidity in the Foreign Exchange Market: Measurement, Commonality, and Risk Premiums

Liquidity in the Foreign Exchange Market: Measurement, Commonality, and Risk Premiums Liquidity in the Foreign Exchange Market: Measurement, Commonality, and Risk Premiums Loriano Mancini Swiss Finance Institute and EPFL Angelo Ranaldo University of St. Gallen Jan Wrampelmeyer University

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

Financial supplement 2013. Zurich Insurance Group Annual Report 2013

Financial supplement 2013. Zurich Insurance Group Annual Report 2013 Financial supplement 2013 Zurich Insurance Group Annual Report 2013 2 Contents Results for the Year ended December 31, 2013 Financial supplement (unaudited) Financial highlights (unaudited) Business operating

More information

THE US DOLLAR, THE EURO, THE JAPANESE YEN AND THE CHINESE YUAN IN THE FOREIGN EXCHANGE MARKET A COMPARATIVE ANALYSIS

THE US DOLLAR, THE EURO, THE JAPANESE YEN AND THE CHINESE YUAN IN THE FOREIGN EXCHANGE MARKET A COMPARATIVE ANALYSIS THE US DOLLAR, THE EURO, THE JAPANESE YEN AND THE CHINESE YUAN IN THE FOREIGN EXCHANGE MARKET A COMPARATIVE ANALYSIS ORASTEAN Ramona Lucian Blaga University of Sibiu, Romania Abstract: This paper exposes

More information

Recent Developments in Local Currency Bond Markets (LCBMs) 1. October 2013

Recent Developments in Local Currency Bond Markets (LCBMs) 1. October 2013 Recent Developments in Local Currency Bond Markets (LCBMs) 1 October 2013 Given the importance of local currency bond markets (LCBMs), including in the context of the work now underway on financing for

More information

Learn to Trade FOREX II

Learn to Trade FOREX II Lesson 1 The Forex Market The Foreign Exchange market, also referred to as the "FX market" or "Spot FX", is the largest financial market in the world with daily average turnover of US$1.9 trillion. Unlike

More information

FOREX. made easy. UNDERSTANDING THE BASICS. An educational tool by Blackwell Global.

FOREX. made easy. UNDERSTANDING THE BASICS. An educational tool by Blackwell Global. FOREX made easy UNDERSTANDING THE BASICS. An educational tool by Blackwell Global. Risk Warning: Forex and CFDs are leveraged products and you may lose your initial deposit as well as substantial amounts

More information

Electronic Trading and the Australian Foreign Exchange Market

Electronic Trading and the Australian Foreign Exchange Market Electronic Trading and the Australian Foreign Exchange Market Alexandra Heath and James Whitelaw* The introduction of electronic broking to the foreign exchange market in the early 199s signalled the start

More information

INDUSTRIAL AND COMMERCIAL BANK OF CHINA ICBC: Your Global Portal to RMB Market. July 2012

INDUSTRIAL AND COMMERCIAL BANK OF CHINA ICBC: Your Global Portal to RMB Market. July 2012 ICBC: Your Global Portal to RMB Market July 2012 Content General Introduction Investment in RMB Services Solution 1 General Introduction to Renminbi (RMB) RMB Renminbi (commonly abbreviated as RMB) is

More information

A profile of the NZ dollar foreign exchange market 1

A profile of the NZ dollar foreign exchange market 1 ARTICLES A profile of the NZ dollar foreign exchange market Nick Smyth, Financial Stability Department In this article we review developments in the market between January and March using a new and detailed

More information

GLOBAL DATA CENTER INVESTMENT 2013

GLOBAL DATA CENTER INVESTMENT 2013 2013 CENSUS REPORT: Global Data Center Investment 2013 GLOBAL DATA CENTER INVESTMENT 2013 2013 - Healthy Growth in Data Center Investment Globally Globally, the data center industry has continued to maintain

More information

EURO AREA EXCHANGE RATE-BASED COMPETITIVENESS INDICATORS: A COMPARISON OF METHODOLOGIES AND EMPIRICAL RESULTS

EURO AREA EXCHANGE RATE-BASED COMPETITIVENESS INDICATORS: A COMPARISON OF METHODOLOGIES AND EMPIRICAL RESULTS JULY 2012 EURO AREA EXCHANGE RATE-BASED COMPETITIVENESS INDICATORS: A COMPARISON OF METHODOLOGIES AND EMPIRICAL RESULTS by Bernadette Lauro and Martin Schmitz, 1 This paper will be presented at the Sixth

More information

A FOREX MARKET OVERVIEW

A FOREX MARKET OVERVIEW 01 CONTENTS Disclaimer Introduction Recent Forex Market History Composition of the Forex market How Currencies Trade on the Forex market Valuation of Currencies Fundamental Analysis Technical Analysis

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

High Income Fund, Inc.[NYSE: AWF] (the "Fund") today released its monthly portfolio update as of September 30, 2012.

High Income Fund, Inc.[NYSE: AWF] (the Fund) today released its monthly portfolio update as of September 30, 2012. News Release FOR IMMEDIATE RELEASE Contacts: Shareholder Contact: 1-800-221-5672 AllianceBernstein Global High Income Fund RELEASES MONTHLY PORTFOLIO UPDATE New York, NY, October 31, 2012 - AllianceBernstein

More information

High Income Fund, Inc.[NYSE: AWF] (the "Fund") today released its monthly portfolio update as of January 31, 2013.

High Income Fund, Inc.[NYSE: AWF] (the Fund) today released its monthly portfolio update as of January 31, 2013. News Release FOR IMMEDIATE RELEASE Contacts: Shareholder Contact: 1-800-221-5672 AllianceBernstein Global High Income Fund RELEASES MONTHLY PORTFOLIO UPDATE New York, NY, February 26, 2013 - AllianceBernstein

More information

FX Derivatives Terminology. Education Module: 5. Dated July 2002. FX Derivatives Terminology

FX Derivatives Terminology. Education Module: 5. Dated July 2002. FX Derivatives Terminology Education Module: 5 Dated July 2002 Foreign Exchange Options Option Markets and Terminology A American Options American Options are options that are exercisable for early value at any time during the term

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