Characteristics of Various Money Markets

Abstract

Preceding chapters have dealt with the history of the markets and the theory and practice of foreign exchange and money markets. Whilst the same principles apply all over the world, every individual foreign exchange or money market has certain peculiarities either because of its location, the currencies handled, local exchange control, reserve requirements or market practice. As a consequence, dealing departments vary around the world with regard to the types and volume of transaction. The dealer, the money manager and the corporate treasurer, therefore, all need to have some knowledge of such peculiarities to see if one market is better suited than another to a particular transaction since that which can be undertaken in one centre may not be possible in another. Major centres include New York, London, Frankfurt, Zurich, Paris, Milan, Toronto, Bahrain, Singapore, Tokyo, Hong Kong, Amsterdam and Brussels.