pricing - page 20
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Why don't you look it up on Wikipedia? You can't take the fish out of the pond without work:
The first thing you read. You haven't explained or proved anything by posting it here. In fact, I've had enough of you.
One of the great scourges of civilization is the learned fool. (Karel Capek)
The first thing you read. You haven't explained or proved anything by posting it here. In fact, I've had enough of you.
One of the great scourges of civilization is the learned fool. (Karel Capek)
I am not going to explain or prove anything to anyone. I am waiting for experts to discuss the correspondent banking relationship - that is what determines (by 90%) today's currency price. I assume that after 70-90 pages of this thread they will be here ..... or the rest will have learned the basics of banking. Only the most resilient will come to the end of the thread and the pricing model.
I am not going to explain or prove anything to anyone. I am waiting for experts with whom to discuss the correspondent relationships of banks - i.e. what determines (90%) today's currency price.
And what is so complicated about correspondent accounts and how do accounts determine 90% of the price of a currency? Well, banks open accounts in different currencies with each other. Or do you mean that the main settlements of currency transactions go through them? Maybe so for operations with real delivery, but not for derivatives, the turnover of which far exceeds the turnover of the underlying. And what practical use is that to us? Do you profit from it or do you plan to?
Correspondent relations and accounting for foreign exchange transactions at the bank
http://www.articlesisland.ru/nauka-i-obrazovanie/ekonomika/korrespondentskie-otnoshenija-i-uchet-valjutnyh-operacij-v-banke.html
"The increase in the volume of international banking transactions, the expansion of their types with a simultaneous increase in risks on such transactions have caused a change in traditional views on correspondent relationships. If earlier banks assigned correspondent relations a secondary, purely technical role, nowadays they are viewed by banks as a tool for reducing risks on transactions and an important source of additional profit.
The importance of correspondent relationships has increased due to the fact that banks, being both borrowers and lenders, are themselves the largest consumers of banking services. According to the Kommersant Daily, 90% of foreign exchange transactions are conducted on an inter-bank basis.
Attracted by the possibility of high returns on lending operations, many banks (including small and medium-sized banks with insufficient reserves and experience) have become participants in capital markets. Correspondent relationships were therefore a flexible tool for adapting to the new environment. Personal connections became important and banks began to turn first and foremost to their traditional correspondents in search of reliable partners.
As part of the work to develop correspondent relationships, banks develop and implement their policies towards other banking institutions, determining with which banks, in which areas and under which conditions to develop operations. This work includes analysing the financial position of correspondent banks, their reputation and solvency, developing measures to safeguard banks' interests, protecting against the risk of non-payment on correspondent transactions, improving conditions for inter-bank settlements and increasing their efficiency.
Thus, the concept of "correspondent relations" has now gone beyond the traditional framework of only agreements between banks on the order of mutual transactions and has spread to virtually all areas of banking activity, including a wide range of inter-bank relationships, work on improving the practice of international settlements, and the quality of banking services to customers. Correspondent relationships in their modern expression should be understood as relationships mediating mutual transactions between banks, which they carry out on behalf of their clients and on their own behalf. The concept of "correspondent relationships" includes the forms, methods and conditions of transactions and the order in which they are carried out.
AlexEro я уже читал этот реферат. Практически что он дает для торговли EURUSD,.....? Вы остатки на коррсчетах анализируете?
No, colleague, it was already said at the beginning of this thread - knowing the balances of the correspondent accounts does not give you much of anything. But understanding money transfer techniques does give an understanding of why banks trade currency with each other.
"Modelling interbank settlements based on mathematical objects".
The article consists of three parts and gives a brief overview of the theory and practice of settlement operations in payment systems. // D. in Economics, Associate Professor of the Department of Accounting and Auditing of the Rostov State University, Head of the Department of System Support RCI of the Head Administration of the Bank of Russia in the Rostov Region. Material was provided by the author.
|16.05.2005 09:51|
http://bankir.ru/analytics/classic/r/1366664
http://bankir.ru/analytics/classic/r/1366668
http://bankir.ru/analytics/classic/r/1366672
No, colleague, it was already said at the beginning of this thread - knowing the balances of the correspondent accounts does not give you much of anything. But understanding money transfer techniques gives you an understanding of why banks trade currency with each other.
|16.05.2005 09:51|
http://bankir.ru/analytics/classic/r/1366664
http://bankir.ru/analytics/classic/r/1366668
http://bankir.ru/analytics/classic/r/1366672
do you think the issue of pricing and the mechanism of settlement are the same? Pricing usually refers to something else, namely the mechanism by which quotations are formed, how they change, etc. That is, the organisation of the process of setting and changing rates. And in a broader and more useful sense, how certain participants act to make money.
Personally, I am not interested in the maze of banking technologies.
Z.s. Thanks for the links. I will have a look at..... A bit later: it is more about organizing/automating interbank settlements
Personally, I'm not interested in getting into the maze of banking technology.
>> But you will have to. Why do currency sellers suddenly appear at every bid? Why weren't they there with the same ask 30 minutes ago?