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View Full Version : Hierarchy of Participants in Decentralized Market



oussama94
05-28-2017, 19:27
At the top of the food chain is the interbank market, which trades
the highest volume per day in relatively few (mostly G-7) currencies. In
the interbank market, the largest banks can deal with each other directly,
via interbank brokers or through electronic brokering systems like Electronic
Brokering Services (EBS) or Reuters. The interbank market is a
credit-approved system where banks trade based solely on the credit relationships
they have established with one another. All the banks can see
the rates everyone is dealing at; however, each bank must have a specific
credit relationship with another bank in order to trade at the rates being
offered. Other institutions such as online ** market makers, hedge funds,
and corporations must trade ** through commercial banks