Market Participants

Question 1

Banks

Answer 1

bring together most of the commercial turnover & speculative activity
market makers
trading activity on behalf of external clients and by own proprietary desk
improving electronic platform with complex algorithms
customer oriented
high volume low margins
hedging & speculative transactions

Question 2

Broker

Answer 2

brokers look to add value based on their capability to find counter-parties
don´t assume risk
get their revenues through brokers fee

Question 3

non bank FX companies

Answer 3

offer services in currencies to private individuals and small or middle companies
are focused on currency exchange payment services than speculative trading (hedging)

Question 4

central banks

Answer 4

super vision & control of financial industry
FX reserves management
market intervention
Currency stabilisation
liquidity management

Question 5

Supranationals

Answer 5

banks for international settlement
international monetary fund
european investment bank

Question 6

Sovereign Wealth fund

Answer 6

state-owned investment fund or entities commonly established from :
balance payments surpluses
official currency operations
resources exports
fiscal surpluses
capital revenues are invested in diff. asset classes
long term view for return

Question 7

Hedge funds

Answer 7

fully oriented to speculative transactions

can act as non-desiderable players for CBs when speculating against currency intervention

Question 8

Investment funds

Answer 8

manage customer accounts
generate large trades
management of international equity PF
purchasing and selling different currencies