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A brief overview of the characteristics of interbank forint/euro trading

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Author Info
Áron Gereben () (Magyar Nemzeti Bank (central bank of Hungary))
Norbert Kiss M. () (Magyar Nemzeti Bank (central bank of Hungary))

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Abstract

This study offers some insight into indirect interbank forint/euro trading through transaction-level data from the dominant electronic trading platform used on this market. We provide an in-depth view of the structure and liquidity of interbank foreign exchange trading by using simple, descriptive statistics. Where feasible, the results are placed into an international context. According to our findings, the key structural attributes of the Hungarian foreign exchange market are similar to those of the more advanced markets, despite the significantly lower level of trading volume and other indicators of market liquidity. Trading intensity and liquidity show large variations, both intra-day and between days. Our statistics suggest that the market has become more advanced, more liquid and has grown deeper during the period under review.

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File URL: http://english.mnb.hu/Resource.aspx?ResourceID=mnbfile&resourcename=mnbsz_200612_gereben-kiss_en
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Publisher Info
Article provided by Magyar Nemzeti Bank (The Central Bank of Hungary) in its journal MNB Bulletin.

Volume (Year): 1 (2006)
Issue (Month): 2 (December)
Pages: 21-26
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Handle: RePEc:mnb:bullet:v:1:y:2006:i:2:p:21-26

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Web page: http://www.mnb.hu/
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Related research
Keywords: Exchange rate; foreign exchange market; liquidity.;

Find related papers by JEL classification:
F31 - International Economics - - International Finance - - - Foreign Exchange
G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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This page was last updated on 2009-11-16.


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