Spot Exchange Rate
A foreign exchange spot transaction, also known as FX spot, is an agreement between two parties to buy one currency against selling another currency at an agreed price for settlement on the spot date. The exchange rate at which the transaction is done is called the spot exchange rate. As of 2010, the average daily turnover of global FX spot transactions reached nearly US$1.5 trillion, counting 37.4% of all foreign exchange transactions. FX spot transactions increased by 38% to US$2.0 trillion from April 2010 to April 2013. Settlement date The standard settlement timeframe for foreign exchange spot transactions is T+2; i.e., two business days from the trade date. Notable exceptions are USD/ CAD, USD/ TRY, USD/ PHP, USD/ RUB, and offshore USD/ KZT and offshore USD/ PKR currency pairs, which settle at T+1. USD/ COP settles T+0. Majority of SME FX payments are made through Spot FX, partially because businesses aren't aware of alternatives. Execution methods Common methods ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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Spot Date
In finance, the spot date of a transaction is the normal settlement day when the transaction is carried out as soon as practical, i.e. "on the spot".UNDERSTANDING ACCOUNTING AND FINANCE: THEORY AND PRACTICEp.401/ref> This kind of transaction is called a "spot transaction" or simply "spot", and is often described as such in contrast to a transaction which is not settled immediately, such as a ''futures contract'' or a ''forward contract''. Settlement date The spot settlement date may be different for different types of financial transactions, based on market practice. For example, in the foreign exchange market The foreign exchange market (forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. By trading volume, ..., spot is normally two banking days forward for the currency pair traded. image:OptionsTimeline.GIF Other settlement date ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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Electronic Broking Services
Electronic Broking Services (EBS) is a wholesale electronic trading platform used to trade on the foreign exchange market (FX) with market-making banks. It was originally created as a partnership by large banks and then became part of CME Group. History EBS was created by a partnership of large foreign exchange (FX) market making banks in 1990 to challenge Reuters' threatened monopoly in interbank spot foreign exchange and provide effective competition. By 2007, approximately US$164 billion in spot foreign exchange transactions were traded every day over EBS's central limit order book, EBS Market. EBS's closest competitor is London Stock Exchange Group's FX Matching service (LSEG Matching). The decision by an FX trader whether to use EBS or LSEG Matching is driven largely by the availability of a required currency pair. In practice, EBS is the primary trading venue for EUR/USD, USD/JPY, EUR/JPY, USD/CHF, EUR/CHF and USD/CNH, and LSEG Matching is the primary trading venue fo ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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Financial Instruments
Financial instruments are monetary contracts between parties. They can be created, traded, modified and settled. They can be cash (currency), evidence of an ownership, interest in an entity or a contractual right to receive or deliver in the form of currency (forex); debt ( bonds, loans); equity (shares); or derivatives ( options, futures, forwards). International Accounting Standards IAS 32 and 39 define a financial instrument as "any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity". Financial instruments may be categorized by " asset class" depending on whether they are foreign exchange-based (reflecting foreign exchange instruments and transactions), equity-based (reflecting ownership of the issuing entity) or debt-based (reflecting a loan the investor has made to the issuing entity). If the instrument is debt it can be further categorized into short-term (less than one year) or long-term. Ty ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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Foreign Exchange Derivative
A foreign exchange derivative is a financial derivative whose payoff depends on the foreign exchange rates of two (or more) currencies. These instruments are commonly used for currency speculation and arbitrage or for hedging foreign exchange risk. History Foreign exchange transactions can be traced back to the fourteenth Century in England. The development of foreign exchange derivatives market was in the 1970s with the historical background and economic environment. Firstly, after the collapse of the Bretton Woods system, in 1976, the International Monetary Fund held a meeting in Jamaica and reached the Jamaica agreement. When the floating exchange-rate system replaced a fixed exchange-rate system, many countries relaxed control of interest rates and the risk of financial market increased. In order to reduce and avoid risks and achieve the purpose of hedging, modern financial derivatives were created. Secondly, economic globalization promoted the globalization of financ ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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Foreign Exchange Option
In finance, a foreign exchange option (commonly shortened to just FX option or currency option) is a derivative financial instrument that gives the right but not the obligation to exchange money denominated in one currency into another currency at a pre-agreed exchange rate on a specified date. See Foreign exchange derivative. Valuation: the Garman–Kohlhagen model As in the Black–Scholes model for stock options and the Black model for certain interest rate options, the value of a European option on an FX rate is typically calculated by assuming that the rate follows a log-normal process. The earliest currency options pricing model was published by Biger and Hull, (Financial Management, spring 1983). The model preceded the Garman and Kolhagen's Model. In 1983 Garman and Kohlhagen extended the Black–Scholes model to cope with the presence of two interest rates (one for each currency). Suppose that r_d is the risk-free interest rate to expiry of the domestic currency and ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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Foreign Exchange Market
The foreign exchange market (forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. By trading volume, it is by far the largest market in the world, followed by the credit market. The main participants are the larger international banks. Financial centres function as anchors of trading between a range of multiple types of buyers and sellers around the clock, with the exception of weekends. As currencies are always traded in pairs, the market does not set a currency's absolute value, but rather determines its relative value by setting the market price of one currency if paid for with another. Example: 1 USD is worth 1.1 Euros or 1.2 Swiss Francs etc. The market works through financial institutions and operates on several levels. Behind the scenes, banks turn to a smaller number of financial firms known as "dealers", who are involve ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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Broker
A broker is a person or entity that arranges transactions between a buyer and a seller. This may be done for a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Neither role should be confused with that of an agent—one who acts on behalf of a principal party in a deal. Definition A broker is an independent party whose services are used extensively in some industries. A broker's prime responsibility is to bring sellers and buyers together and thus a broker is the third-person facilitator between a buyer and a seller. An example would be a real estate broker who facilitates the sale of a property. Brokers can furnish market research and market data. Brokers may represent either the seller or the buyer but generally not both at the same time. Brokers are expected to have the tools and resources to reach the largest possible base of buyers and sellers. They then screen these potential buyers or sellers f ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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ESpeed
Cantor Fitzgerald, L.P. is an American financial services firm that was founded in 1945. It specializes in institutional equity, fixed-income sales and trading, and serving the middle market with investment banking services, prime brokerage, and commercial real estate financing. It is also active in new businesses, including advisory and asset management services, gaming technology, and e-commerce. It has more than 5,000 institutional clients. Cantor Fitzgerald is one of 24 primary dealers that are authorized to trade US government securities with the Federal Reserve Bank of New York. Cantor Fitzgerald's 1,600 employees work in more than 30 locations, including financial centers in the Americas, Europe, Asia-Pacific, and the Middle East. Together with its affiliates, Cantor Fitzgerald operates in more than 60 offices in 20 countries and has more than 12,500 employees. Before 2001, the company's headquarters were located between the 101st and 105th floors of the North Tower o ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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LMAX Exchange
LMAX Group is a global financial technology company which operates multiple institutional execution venues for electronic foreign exchange (FX) and crypto currency trading. The Group's portfolio includes LMAX Exchange, LMAX Global and LMAX Digital. Headquartered in London, UK, LMAX Group builds and runs its own global exchange infrastructure, which includes matching engines in London, New York and Tokyo. The company has regional offices in New York, Chicago, Hong Kong, Singapore, Tokyo and Auckland. History LMAX Group was launched in 2010 to offer exchange-style execution and regulated, rules-based, no 'last look' trading environment which is governed by the LMAX Rulebook, ensuring fully transparent and fair execution for all its clients and market makers. Servicing funds, banks, brokerages, asset managers and proprietary trading firms, the company offers an anonymous, regulated and rules-based trading environment with strict price and time priority order execution at ultra ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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FXall
FXall (FX Alliance Inc) is a foreign exchange aggregator providing electronic trading to banks and brokers using an electronic communication network with headquarters in New York. The company provides electronic trading in the foreign exchange market to institutional clients using straight through processing. Clients include active traders, asset managers, corporate treasurers, market makers, broker-dealers and prime brokers. The company has been a subsidiary of Refinitiv since 2018. History FXall began operations in 2000 as a dealing platform for a consortium of 16 banking institutions, each owning between three and five percent of the company. By 2003 it had grown to having trading volume of $9bn overtaking its main rivals. Acquisition In 2012 the company was acquired by Thomson Reuters for $625 million. After Thomson Reuters sold a majority stake in its Financial & Risk (F&R) unit to private equity firm Blackstone Inc. in 2018, the new business, now called Refinitiv LSEG ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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Proprietary Software
Proprietary software is computer software, software that grants its creator, publisher, or other rightsholder or rightsholder partner a legal monopoly by modern copyright and intellectual property law to exclude the recipient from freely sharing the software or modifying it, and—in some cases, as is the case with some patent-encumbered and EULA-bound software—from making use of the software on their own, thereby restricting their freedoms. Proprietary software is a subset of non-free software, a term defined in contrast to free and open-source software; non-commercial licenses such as CC BY-NC are not deemed proprietary, but are non-free. Proprietary software may either be closed-source software or source-available software. Types Origin Until the late 1960s, computers—especially large and expensive mainframe computers, machines in specially air-conditioned computer rooms—were usually leased to customers rather than Sales, sold. Service and all software available ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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D2000-2
D2000-2 or Reuters Dealing 2000-2 was a software system designed by Reuters for foreign exchange trading. This automated electronic trading system allowed a dealer to enter buy and/or sell prices directly into the system, thereby avoiding the need for a human broker. The system recorded the touch price which is the highest bid and lowest ask price. History D2000-2 was released in 1992 and provided electronic matching while direct conversion was provided by D2000-1. The D2000-2 product superseded D2000 which was originally released in 1987 and only provided indicative foreign exchange prices. Much of the functionality of the system was incorporated in Reuters' subsequent online trading platform, Reuters 3000 Xtra Reuters 3000 Xtra was an electronic trading platform which was released by Reuters in 1999 and supported until the end of 2013. It was typically used by professional traders and financial analysts in trading rooms. It was superseded by the Eik .... References ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |