Market Features of International Markets

Macroeconomic rules of the financial market have a different task and are linked to the broad-spectrum policies of the market. These can indicate the required market institution, the market structure and furthermore its aims and its own monetary and fiscal policies. All these characteristics make the market unique with respect to the economy in which it works. One of the features of this uniqueness is market transparency. This characteristic is defined on the basis of (governance) rules, institutions, agents, and polices connected to it. The more people know how to complete the trading asset process, the more a market is transparent. In this manner, expectations become heterogeneous for individuals/agents and, at the same time, they reflect the information at hand, which is then elaborated depending on the different sell/buy strategies.

Both investors and borrowers are well-known names in the international market. These loans are unsecured and no government guarantees either. Only creditworthy borrowers are generally approaching this market. Country’s credit rating and borrowing party’s credit rating rate being looked into; rating by standard and poor or moody’s are popular for assessing the creditworthiness of borrower.

Regulations

The market is functioning outside the countries and is offshore in nature. No regulation of any

national and international nature exists. The market practices in the secondary market trading are based on the rules laid down by Association of International Bond dealers.

Same parent companies and some foreign governments do guarantee the interest and payment of principal. The interest payment is provided in the agreement itself and stricter controls are exercised in the collection of interest, although these rates are lower than those on national bonds of any country.

International Financial System and Foreign Exchange Market
Euro Currency Market

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