Khoa Tài Chính

School Doanh Nghiệp

of Finance

International Financial Markets

International Finance
 Contents

 International financial markets

 Financial centers in the world

 Transactions in international financial

markets

 Participants in international financial

markets
 International financial markets
not a physical
place, can get
things done using
telecommunication/
internet/online
account th trng chng khoán

euro dollar (3-2a in the book):

US dollar circulating outside
the US, is not constrained by
the Fed (i.e. national
regulations, e.g. required
reserve) min 16:15 recording
chuong 1 (1)

e.g. European
currency market
International financial markets
International financial markets
International financial markets
International financial markets
Financial centers in the world

Open

VietNam

24h Market - 3.240 billion USD/day

16:45 total transaction value/day, half of it is from these places
 Financial centers in the world

Châu Á EU Bắc Mỹ Úc

0 6 12 18 24
Tokyo Frankfurt New York Sydney
HongKong London
Singapore
 around 20:40 ish

Trading time in forex market

Time zone The US The UK Japan
most important, ~18%
Tokyo, open 7:00 pm 0:00 9:00 am transaction value

Tokyo, close 4:00 am 9:00 am 6:00 pm

London, open 3:00 am 8:00 am 5:00 pm >58% all transaction
value

London, close 0:00 5:00 pm 2:00 am

New York, open 8:00 am 1:00 am 10:00 pm

New York, close 5:00 pm 10:00 pm 7:00 am

 Transactions in international financial markets

trade and investment

physical trading 26:30 spot trading

15%

85%

hedging and speculation

position trading
Theo BIS (Bank of International Settlement)
 Participants in international financial markets
44:30 Central Bank:
35:10 investment funds look like joint
1. control participants in F.Markets
stock companies, issue stocks in stock
2. implement monetary policies for the economy
markets to mobilize funds for their
3. issue currencies Invest operation, usually specialize in investing
4. control money supply
(bonds/stocks/diversified portfolios),
ment profits earned=return rate of these
investing portfolios
funds
31:40 commercial banks:
1. an intermediary between
lenders and borrowers Firms 33:50 firms have demands for
Comercial
2. offer services: exchange
exchanging foreign currencies
to facilitate for their
currency, swap contracts,
transfer money, etc banks int.transac/ investing in foreign
currencies
CB
39:30 e.g. 1. pension funds: in
VN: dont have investment
function, but otherwise in other
countries.
37:52 brokers dont provide
Brokers Other 2. insurance companies: offer
capitals for international
markets, intermediaries
instituationsinsurance contracts->receive
insurance premium->use to
between buyers and sellers, invest in I.F.Market, can
receive commissions after distribute part of the return from
services provided investment to customers