Exchange
History of stock exchanges has its roots in antiquity: the first organized trading in agricultural commodities recorded in Sumerian chronicles around 3000 BC The concept of trading contracts for the supply of rice in the future, was born in Japan in the early XVII century. In Europe, exchanges of capital began to develop actively in the Age of Discovery and expansion of colonial trade. Finally, at the beginning of the XIX century in the United States originated the modern futures market. Modern Exchange - it is usually non-profit organization with a fixed membership, to ensure the holding of fair and transparent bidding, as well as ensure their reserves (financial and commodity), the unconditional fulfillment of the obligations of the parties under the contract. Depending on the specifics of traded instruments, and historical traditions of the host country used technology trade can be divided into 3 groups.
Open Outcry
Classic U.S. futures market provides for the organization of trading on the specially designated for each contract areas (pits), which denied access to outsiders, between traders who have birzheye place. After receiving an order from the clerk, customer service (once orders are delivered on paper to the floor boys, runners now use a wireless computer network), or wanting to make a transaction at its own expense, floor trader shouts out his sentence so that he could be heard the rest. Transactions are also accompanied by shouting prices, hence the name (something like "open outcry" in Russian). Support staff (clerks who take orders from customers and smaller brokerage houses) located around the site. In active markets like the S & P 500 has a value, even the place where the trader is also a place where the desk clerk, so many brokers in the advertising plans of leading stock room and note its location. Open Outcry used on all the "old" U.S. futures exchanges.
Auction (Specialist System)
A somewhat more complicated system, called the auction used to trade shares on the traditional U.S. stock exchanges (NYSE, AMEX, PSE). The central part of its experts are carrying out transactions with a small number of shares exclusively. After receiving an order from a customer, a brokerage firm sends its traders in the room, and he, in turn, refers to a specialist, leading a total order book and to notify participants of the lowest prices available supply and demand. The specialist also acts as an agent in relation to the orders received through the electronic system, and can trigger an interest in buying or selling shares, letting potential stakeholders (major) players. In the case of liquidity shortages and an imbalance of orders specialist operates its own capital (cash and shares) to stabilize the market and avoid sharp spikes in prices. The effectiveness of the professional special stock control commission.
Electronic System
The development of information technologies has led to the emergence of automated transactions and settlement. Initially, these systems have been used as support for the reduction of paper work and trade in irregular hours (Globex, Access), but in recent years as a purely electronic contracts (e-mini for CME), and electronic exchanges. And if there EUREX central hall, the computers that are traders, the ideology of the American Cantor Exchange provides for itself only on the exchange of technical personnel, providing the servers. From the terminal, with access to the system, enter orders and transactions, the prices which immediately comes to information systems and broadcast on the computers of subscribers. The electronic system has several advantages: speed, reliability, and most importantly, a level playing field for bidders. If on-site broker representing the client, may not be able to make a deal at the price of the order only because it is too far away from the trader offering the price or volume of the order less than that which agrees quoted side, the market for electronic market these situations almost excluded.
Interbank Foreign Exchange Market
The currency market is the largest in the world by turnover and geography. Its modern history dates from the early 70s of XX century, when it was canceled the Bretton Woods agreement, committed the rates of major world currencies after the Second World War. Since then, numerous attempts of various governments and administrative influence on exchange rates invariably led to the collapse and economic crisis, so that the free market has proven to be effective (at least, sane politician). Freedom has a downside: the market has no supervisory authority, no limits, no arbitration commissions, so that any dispute with the dealer or bank accounts allow the investor alone. An exception is the United Kingdom, where financial institutions that open accounts for clients of speculative currency trading, must consist in SFA (Agency for Futures and Stocks), and obey his rules.
Banks
Banks make most of the actual transactions in the foreign exchange market, providing foreign trade payments of their clients. Leader in technology providing the interbank market, of course, is the Reuters Dealing - a system that provides an opportunity to request the parties to each other's quotes, make trades and track quotes, introduced into the system by other contributors. The rules are determined by calculations bilateral agreements between banks.
Dealers
The growth of public interest to speculate on the currency market has led to numerous non-bank institutions providing services to marginal trading on FOREX. Many futures brokers with a reputation in his open dealing departments. Customer relationships are defined by the contract, the essence of which in a nutshell is as follows: The dealer is not responsible for anything, the client - for all, not only within the initial deposit (ie, can be left). Unlike the stock exchange, where prices are determined by consensus of the bidders in the currency market the client receives a quotation from a dealer, so there is a permanent conflict of interest.
History of stock exchanges has its roots in antiquity: the first organized trading in agricultural commodities recorded in Sumerian chronicles around 3000 BC The concept of trading contracts for the supply of rice in the future, was born in Japan in the early XVII century. In Europe, exchanges of capital began to develop actively in the Age of Discovery and expansion of colonial trade. Finally, at the beginning of the XIX century in the United States originated the modern futures market. Modern Exchange - it is usually non-profit organization with a fixed membership, to ensure the holding of fair and transparent bidding, as well as ensure their reserves (financial and commodity), the unconditional fulfillment of the obligations of the parties under the contract. Depending on the specifics of traded instruments, and historical traditions of the host country used technology trade can be divided into 3 groups.
Open Outcry
Classic U.S. futures market provides for the organization of trading on the specially designated for each contract areas (pits), which denied access to outsiders, between traders who have birzheye place. After receiving an order from the clerk, customer service (once orders are delivered on paper to the floor boys, runners now use a wireless computer network), or wanting to make a transaction at its own expense, floor trader shouts out his sentence so that he could be heard the rest. Transactions are also accompanied by shouting prices, hence the name (something like "open outcry" in Russian). Support staff (clerks who take orders from customers and smaller brokerage houses) located around the site. In active markets like the S & P 500 has a value, even the place where the trader is also a place where the desk clerk, so many brokers in the advertising plans of leading stock room and note its location. Open Outcry used on all the "old" U.S. futures exchanges.
Auction (Specialist System)
A somewhat more complicated system, called the auction used to trade shares on the traditional U.S. stock exchanges (NYSE, AMEX, PSE). The central part of its experts are carrying out transactions with a small number of shares exclusively. After receiving an order from a customer, a brokerage firm sends its traders in the room, and he, in turn, refers to a specialist, leading a total order book and to notify participants of the lowest prices available supply and demand. The specialist also acts as an agent in relation to the orders received through the electronic system, and can trigger an interest in buying or selling shares, letting potential stakeholders (major) players. In the case of liquidity shortages and an imbalance of orders specialist operates its own capital (cash and shares) to stabilize the market and avoid sharp spikes in prices. The effectiveness of the professional special stock control commission.
Electronic System
The development of information technologies has led to the emergence of automated transactions and settlement. Initially, these systems have been used as support for the reduction of paper work and trade in irregular hours (Globex, Access), but in recent years as a purely electronic contracts (e-mini for CME), and electronic exchanges. And if there EUREX central hall, the computers that are traders, the ideology of the American Cantor Exchange provides for itself only on the exchange of technical personnel, providing the servers. From the terminal, with access to the system, enter orders and transactions, the prices which immediately comes to information systems and broadcast on the computers of subscribers. The electronic system has several advantages: speed, reliability, and most importantly, a level playing field for bidders. If on-site broker representing the client, may not be able to make a deal at the price of the order only because it is too far away from the trader offering the price or volume of the order less than that which agrees quoted side, the market for electronic market these situations almost excluded.
Interbank Foreign Exchange Market
The currency market is the largest in the world by turnover and geography. Its modern history dates from the early 70s of XX century, when it was canceled the Bretton Woods agreement, committed the rates of major world currencies after the Second World War. Since then, numerous attempts of various governments and administrative influence on exchange rates invariably led to the collapse and economic crisis, so that the free market has proven to be effective (at least, sane politician). Freedom has a downside: the market has no supervisory authority, no limits, no arbitration commissions, so that any dispute with the dealer or bank accounts allow the investor alone. An exception is the United Kingdom, where financial institutions that open accounts for clients of speculative currency trading, must consist in SFA (Agency for Futures and Stocks), and obey his rules.
Banks
Banks make most of the actual transactions in the foreign exchange market, providing foreign trade payments of their clients. Leader in technology providing the interbank market, of course, is the Reuters Dealing - a system that provides an opportunity to request the parties to each other's quotes, make trades and track quotes, introduced into the system by other contributors. The rules are determined by calculations bilateral agreements between banks.
Dealers
The growth of public interest to speculate on the currency market has led to numerous non-bank institutions providing services to marginal trading on FOREX. Many futures brokers with a reputation in his open dealing departments. Customer relationships are defined by the contract, the essence of which in a nutshell is as follows: The dealer is not responsible for anything, the client - for all, not only within the initial deposit (ie, can be left). Unlike the stock exchange, where prices are determined by consensus of the bidders in the currency market the client receives a quotation from a dealer, so there is a permanent conflict of interest.
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