FX 101 for the Securities Markets

The FX markets, often called the currency markets, have been around for a very long time, at least since the time of the New Testament, far longer than either securities or derivatives have existed. And the FX markets are far bigger than either securities or derivatives, by a factor of four times or more. In spite of that, securities market participants often think of the FX market as a side show, but it is very much the tail that wags the financial dog. This TABB Group note examines the FX markets and how they interact with securities and derivatives.