1、Centralized and decentralized marketsCentralized: Stock exchanges and futures exchanges,Decentralized: Foreign exchanges,Market makerBrokerquasi (kwz, -s, kwz, -s) Pronunciation Key adj. Having a likeness to something; resembling: a quasi successInsider spreadSettlement risk2. What is predictable im
2、mediacy? Explain its importance in the foreign exchange market.The two side quotes, make the liquidity possible, can buy and sell,This is predictable immediacy. That means they make the market liquidity possible and predictable. Its important, without this service, the market wont move, Or if the sp
3、read is too wide or too thin, the market wont move either.3. What are the possible determinants of market makers bid and ask spread?Those three determinants: cost recovery, adverse selection, and inventory adjustment needs.4. Explain the mechanics of foreign exchange trading in the interbank market.
4、5. Outline the differences between the dealer and the broker market segments of the foreign exchange markets.6. Explain the role of nostro and vostro accounts in foreign exchange settlements.Australian Bank Account ( Japanese Yen account ): nostro account (our account)Japanese Bank Account ( Austral
5、ian dollar cheque account): vostro (their account)Its consistent. Because thats our account (Westpac), its just located in NY. But the currency is in USD, thats why its nostro account.To HSBC, their account in Sydney. Their original currency is USD, just had an branch /account in Sydney (AUD). Thats
6、 why its vostro account. 7. Discuss the role Continuous Linked Settlement (CLS) bank in the foreign exchange market. Explain with an example how it works.Confirm with Professor the (i) (ii) arrows Hi,If you read the explanations carefully, you will notice that numbers appear after their explanations
7、. I have moved the numbers in front and this one should make it easier.(i) Bank X had sold USD to Bank Y in exchange for JPY. Bank X and Bank Y both submit details of the trade to CLS Bank. (ii) CLS Bank matches the trade and retains this information until settlement date. At the start of the settle
8、ment day CLS Bank will calculate the net long and short (ie buy and sell) positions for each bank in each currency and will provide a pay-in schedule to each bank. (iii) Banks make payments to CLS Bank according to their pay-in schedules. Funds are transferred from the banks to CLS Bank across central banks accounts via the local RTGS system. (iv) CLS Bank completes the settlement by adjusting the respective positions of banks across its books. CLS Bank makes payments to banks in order to return their positions at CLS Bank to zero. (EMEAP, 2001)?
copyright@ 2008-2022 冰豆网网站版权所有
经营许可证编号:鄂ICP备2022015515号-1