The next ten years will bring major change to the world of banking, securities trading and finance. Influenced by the key converging factors of the Internet, the euro, the Y2K Problem, same-day-settlement, and electronic trading networks, the future will find us in a world with one-third fewer banks and one-third fewer stock exchanges. The vast majority of trades in listed securities will occur...

At the end of 1998, the staff of the Federal Reserve Board introduced a new set of indexes of the foreign exchange value of the U.S. dollar.1 The staff made the changeover, from indexes that had been used since the late 1970s, for two reasons. First, five of the ten currencies in the staff’s previous main index of the dollar’s foreign exchange value were about to be replaced by a single new cur...

Abstract-Foreign exchange market is the largest and the most important one in the world. Foreign exchange transaction is the simultaneous selling of one currency and buying of another currency. It is essential for currency trading in the international market. In this paper, we have investigated Artificial Neural Networks based prediction modelling of foreign exchange rates using five different ...

The conference presentation focused on recent results on dynamic trading patterns in limit order markets, primarily foreign exchange and money markets. Clear feedbacks are observed between liquidity, volatility and volume. These results suggest that any regulatory regime for market liquidity should appreciate these feedback rules, and treat liquidity risk as endogenously determined, rather than...

This paper explores the dynamics of informationand knowledge-based activities in one of the world’s leading foreign exchange banks and its development of an innovative online trading system. These activities are analyzed using the framework of “the knowing organization,” which postulates that learning and innovation in organizations result from managing holistically the activities of sens...

This paper examines how high-frequency trading decisions of individual investors are influenced by past price changes. Specifically, we address the question as to whether decisions to open or close a position are different when investors already hold a position compared to when they don’t. Based on a unique dataset from an electronic foreign exchange trading platform, OANDA FXTrade, we find tha...

Grammatical Evolution (GE) is a novel, data-driven, model-induction tool, inspired by the biological gene-to-protein mapping process. This study provides an introduction to GE, and applies the methodology in an attempt to uncover useful technical trading rules which can be used to trade foreign exchange markets. In this study, each of the evolved rules (programs) represents a market trading sys...

This paper examines the information content of trades by different participants via different trading channels in the spot foreign exchange market. Using spot FX transactions of a major Australian bank, we find that central banks have the greatest price impact, followed by nonbank financial institutions such as hedge funds and mutual funds. Trades by non-financial corporations have the least im...