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Execution methods in foreign exchange markets

Author

Listed:
  • Paola Gallardo
  • Alexandra Heath

Abstract

Over the past decade or so, the spread of electronic trading has brought about significant changes in the structure of the interbank foreign exchange markets and the relationship between foreign exchange dealers and their clients. This article looks at the way foreign exchange transactions are executed based on the BIS triennial survey data, and provides some quantitative estimates of the importance of electronic trading across transaction types, counterparties and economies.

Suggested Citation

  • Paola Gallardo & Alexandra Heath, 2009. "Execution methods in foreign exchange markets," BIS Quarterly Review, Bank for International Settlements, March.
  • Handle: RePEc:bis:bisqtr:0903h
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    References listed on IDEAS

    as
    1. Tai Terada & Naoto Higashio & Jun Iwasaki, 2008. "Recent Trends in Japanese Foreign-Exchange Margin Trading," Bank of Japan Review Series 08-E-3, Bank of Japan.
    2. William Barker, 2007. "The Global Foreign Exchange Market: Growth and Transformation," Bank of Canada Review, Bank of Canada, vol. 2007(Autumn), pages 4-13.
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    Citations

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    Cited by:

    1. Reitz, Stefan & Schmidt, Markus & Taylor, Mark P., 2009. "Financial Intermediation and the Role of Price Discrimination in a Two-Tier Market," MPRA Paper 15602, University Library of Munich, Germany.
    2. Sam Nasypbek & Scheherazade S Rehman, 2011. "Explaining the returns of active currency managers," BIS Papers chapters, in: Bank for International Settlements (ed.), Portfolio and risk management for central banks and sovereign wealth funds, volume 58, pages 211-256, Bank for International Settlements.
    3. Deck, Cary & Hao, Li & Porter, David, 2015. "Do prediction markets aid defenders in a weak-link contest?," Journal of Economic Behavior & Organization, Elsevier, vol. 117(C), pages 248-258.
    4. Boschen, John F. & Smith, Kimberly J., 2016. "The uncovered interest rate parity anomaly and trading activity by non-dealer financial firms," International Review of Economics & Finance, Elsevier, vol. 45(C), pages 333-342.

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    More about this item

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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