Eurocurrency financial items are claims that arecreated in one country but denominated in the currency of another. The Eurocurrencysystem comprises the markets within which these claims are created and traded. Thisactivity originated in Europe (hence the prefix euro-) but now takes placethroughout the world, especially Asian and the Caribbean. Three broad classes offinancial items are involved: (1) bank deposits and credits, for example dollardeposits held at European banks (i.e. Eurodollar deposits); (2) primarysecurities in the form of Eurobonds and Euronotes; and (3) derivativesecurities such as foreign currency options (e.g. on the ecu) or futures onEurodollar instruments. Initially, Eurocurrency financial items weredenominated primarily in dollars. Today, however, there are many currencies ofdenomination with the Deutschemark and yen playing an increasingly importantrole.