【学习笔记】International Finance 国际金融论研究 学习笔记-21

Part I

Basics ofInternational Finance --21

Ch5 --5

TheMarket for Foreign Exchange

Cross Rates

Spot Foreign Exchange Microstructure

1.    Marketmicrostructure refers to the mechanics of how a marketplace operates.

2.    The bid-ask spreads in the spot FX market:

        1)   Increase with FX exchange rate volatility.

        2)   Decrease with dealer competition.

3.    Private information is an important determinant of spotexchange rates.