2. Forex market
In comparison the over the counter market
is traded around the world by a multitude
of participants and price quality, reputation
and trading conditions determine who a participant
wishes to trade with. It is probably the most
competitive market in the world and brokers
like ACM must insure they live up to the highest
standards of service and be compliant with
market standards and practices if they want
to acquire new customers and retain their
existing ones. In 1998 a survey under the
auspices of the Bank for International Settlements
(BIS), global turnover of reporting dealers
was estimated at about USD 1.49 trillion per
day. In comparison, currency futures turnover
was estimated at USD 12 billion.
Among the various financial centers around
the world, the largest amount of foreign exchange
trading takes place in the United Kingdom,
even though that nation's currency, the British
pound is less widely traded in the market
than several others. As shown in the graph
underneath, the United Kingdom accounts for
about 32 percent of the global total; the
United States ranks a distant second with
about 18 percent, and Japan is third with
8 percent.
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