Geographic Extent of the Market Measuring FOREX Market

Geographic Extent of the Market Measuring FOREX Market Activity: Average Electronic Conversations Per Hour Greenwich Mean Time 10 AM Lunch Europe In Tokyoopening Asia closing Americas London open closing Afternoon in America 6 pm Tokyo In NY opens

Size of the FOREX Market Global Foreign Exchange Market Turnover (daily averages in April, billions of US dollars) Source: Bank for International Settlements, “Central Bank Survey of Foreign Exchange and Derivatives Market Activity in April 2001, ” October 2001, www. bis. org.

Size of the FOREX Market Geographic Distribution of Foreign Exchange Market Turnover (daily averages in April, billions of US dollars) Source: Bank for International Settlements, “Central Bank Survey of Foreign Exchange and Derivatives Market Activity in April 2001, ” October 2001, www. bis. org.

Size of the FOREX Market Currency Distribution of Global Foreign Exchange Market Turnover (percentage shares of average daily turnover in April) Source: Bank for International Settlements, “Central Bank Survey of Foreign Exchange and Derivatives Market Activity in April 2001, ” October 2001, www. bis. org.

Exhibit 6. 5 Spot and Forward Quotations for the Euro and Japanese Yen

Exhibit 6. 6 Foreign Exchange Rate Quotations on the U. S. Dollar/British Pound in the Financial Press

Exhibit 6. 7 Key Currency Cross Rates

Exhibit 6. 8 Triangular Arbitrage