tailieunhanh - Lecture Financial institutions, instruments and markets: Chapter 15 - Christopher Viney

Chapter 15 - Foreign exchange market: Participants and mechanics. In this chapter students will be able to: Identify participants in foreign exchange (FX) markets, describe functions and operations of FX markets, outline instruments traded in FX markets, explain conventions for quotation and calculation of exchange rates and forward exchange rates Identify participants in foreign exchange (FX) markets. | Chapter 15 Foreign Exchange Market: Participants and Mechanics Learning Objectives Identify participants in foreign exchange (FX) markets Describe functions and operations of FX markets Outline instruments traded in FX markets Explain conventions for quotation and calculation of exchange rates and forward exchange rates Identify participants in foreign exchange (FX) markets Chapter Organisation Introduction FX Market Participants Operation of the FX Market Spot and Forward Transactions Spot Market Quotations Forward Market Quotations European Monetary Union Summary Introduction FX markets comprise all financial transactions denominated in foreign currency, currently estimated to be trillion per day Facilitate exchange of value from one currency to another Internationally adopted FX market conventions to improve market functionality Chapter Organisation Introduction FX Market Participants Operation of the FX Market Spot and Forward Transactions Spot Market Quotations Forward Market Quotations European Monetary Union Summary FX Market Participants FX market participants can be classified as Firms conducting international trade transactions FX dealers Central banks Investors and borrowers Speculative transactions Arbitrage transactions Firms conducting international trade transactions Exporters receive foreign currency for the sale of their goods and services Exporters use the FX market to sell foreign currency and buy AUD Importers use the FX market to buy foreign currency (sell AUD) to be used for purchasing imports FX dealers Are financial institutions that are licensed or authorised by the central banks of the countries in which they operate Quote two-way (. buy and sell) prices There are also FX brokers who transact almost exclusively with FX dealers Central banks Enter FX market to Purchase foreign currency to pay for imports or interest on foreign debt Change the | Chapter 15 Foreign Exchange Market: Participants and Mechanics Learning Objectives Identify participants in foreign exchange (FX) markets Describe functions and operations of FX markets Outline instruments traded in FX markets Explain conventions for quotation and calculation of exchange rates and forward exchange rates Identify participants in foreign exchange (FX) markets Chapter Organisation Introduction FX Market Participants Operation of the FX Market Spot and Forward Transactions Spot Market Quotations Forward Market Quotations European Monetary Union Summary Introduction FX markets comprise all financial transactions denominated in foreign currency, currently estimated to be trillion per day Facilitate exchange of value from one currency to another Internationally adopted FX market conventions to improve market functionality Chapter Organisation Introduction FX Market Participants Operation of the FX Market

• Tài chính doanh nghiệp
• Financial institutions
• Financial Instruments
• Financial markets
• Financial system
• Impact of globalisation
• Functions of the financial system
• Lecture Financial markets and institutions
• Financial institutions markets
• Risks at financial institutions
• Market risk
• Savings institutions
• Credit unions
• Commercial banks
• Financial statements
• Financial markets and institutions
• Interest rates change
• Financial institutions exist
• Central banking
• Capital markets
• Money markets
• Interest rate fundamentals
• Interest rates
• Security valuation
• Federal reserve system
• Monetary policy
• Money market yields
• Bond markets
• Municipal bonds
• Mortgage markets
• Primary mortgage market
• Stock markets
• Common stock
• Foreign exchange markets
• Foreign exchange
• Derivative securities markets
• Futures markets
• Commercial bank liabilities
• Regulation of commercial banks
• Deposit guarantee funds
• Insurance companies
• Life insurance companies
• Securities firms
• Investment banks
• Mutual funds
• Hedge funds
• Pension funds
• Private pension funds
• Managing credit risk
• Balance sheet
• Managing liquidity risk
• Managing interest rate risk
• Insolvency risk
• Managing risk
• Loan sales
• Managing risk off the balance sheet