Unless explicitly defined otherwise, transactions conducted by banks on the foreign exchange market. Today, foreign exchange trading is characterized by round-the-clock transactions throughout the world; communication between market participants takes place via telecommunications systems and computers. – As a result, it is not possible to establish uniform market prices for foreign exchange rates – unlike, for example, the prices of shares on the stock exchange. Even for the market participants themselves, trading remains largely opaque. Up to now, there has also been no duty of disclosure for banks’ foreign exchange trading. As a result, data on price formation, the amount of turnover and other information are not available. The Bank for International Settlements therefore conducts corresponding surveys worldwide – so far every three years. – The most frequently exchanged currency pair in 2012 was EUR/USD. England (London is the world’s largest foreign exchange trading center!) accounted for 34.1 percent of total foreign exchange trading, Switzerland for 6.1 percent and Germany for 2.5 percent; it should be noted that many German and also some Swiss banks have moved their foreign exchange trading from Frankfurt and Zurich to London. – See order flow, banking market, foreign exchange trading, computerized, foreign exchange market, Herstatt bankruptcy, cash foot, conversion, market makers, parallel credit. – Cf. Monthly Report of the Deutsche Bundesbank of January 2008, pp. 19 et seq. (foreign exchange market turnover broken down by various aspects).
Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/