Comment
Warming to the weather
Foreign exchange spot and derivatives markets are undergoing major changes. The growth of electronic trading and last year’s introduction of the euro have fundamentally altered market structure

Electronic trading
Looking for a central system
The range of electronic trading platforms for the foreign exchange markets is expanding quickly, allowing greater access for more market participants. But the development of multiple systems could split liquidity in the market

The euro
A new world order
The introduction of the euro has changed currency risk management in Europe and acted as a catalyst for further consolidation among the major players in the market

Round table
Technology is key to derivatives growth
Industry insiders believe the Internet will open up a broader product base to more foreign exchange derivatives’ users, while tailored solutions will increasingly meet corporate treasury currency risk management needs

Currency swaps primer
Rags to riches
A mature market and full yield curve have developed for cross-currency swaps in the past two years. Individual trades can run into billions of dollars, and the market can provide openings for some profitable arbitrage trade

Currency crises
A regional contagion
International trade is more important than macroeconomic and financial factors in understanding how currency crises spread