Depository financial institutions are subject to statutory deposit reserve policy restrictions and are required to adjust the amount of statutory deposits payable every day based on the amount of deposits. 18 types of reserves. Therefore, adjusting the surplus and shortfall of funds has become an important part of the daily management work of depository financial institutions, and this has resulted in the creation of a huge inter-bank short-term capital market.

In the United States, the reserves deposited by banks are stored in the Federal Reserve Bank account. Therefore, the adjustment of the reserve balance is called For federal funds lending, the resulting interbank lending market is called the federal funds market, and the interbank unsecured short-term The borrowing rate is called the federal funds rate. The federal funds rate is the most important monetary policy operational target in the Federal Reserve system. Any time the Fed adjusts the federal Decisions on the funds rate will be quickly transmitted to the U.S. financial market, and in turn cause chain reactions in major markets around the world. It can be said that it is one of the most influential interest rate indicators in the world.

In recent years, the situation of various stock trading venues in the United States has changed significantly. Listed stocks may not necessarily be traded on the exchange where they are listed. A complex trading system was formed.

(1 Introduction

(2) Stratification of Nasdaq stock market

(3) Trading mechanism of Nasdaq market

(1 Introduction

(2) Characteristics of transaction system model (3)

1. Concept: Bonds issued by the U.S. federal government are collectively called U.S. Treasury bonds, and U.S. Treasury bonds are the U.S. bond market. Cornerstone. 2. Characteristics: Under normal circumstances, there is basically no default risk in local currency bonds issued by the central government, so this type of Bonds are regarded as "risk-free assets", and their yields are also regarded as "risk-free rates of return" by financial markets. Have a significant impact on the pricing and trading of other financial assets. 3. Classification: According to different maturities, U.S. Treasury bonds with a maturity of less than 1 year are called Treasury bills (T-Bills). Those with more than 1 year and less than 10 years are called treasury bills (T-Notes), and those with more than 10 years are called government notes. Debt (T-Bonds). In addition, according to the characteristics of Treasury bonds, U.S. Treasury bonds also include Inflation-Protected Securities (TIPs), Floating rate Treasury notes (FRNs) and other categories

U.S. federal agency bonds actually generally refer to bonds issued by two types of agencies:

1. Concept: Municipal Bonds are bonds issued by states and local governments (cities, towns, counties and school district) or its affiliated agencies (bureaus and agencies such as housing, health care, airports, ports, and economic development) institutions). 2. Purpose: To raise funds for a variety of municipal projects, provide cash flow, and satisfy other aspects of the government need. Some states even use this "channel" to raise funds for non-governmental private projects. 3. Sources of principal and interest repayment: the issuer’s general tax revenue, specific tax revenue, public project revenue or private industry Individual reimbursement can also be a combination of these multiple sources.

There are many types of corporate bonds in the United States, which are divided into two types: bonds issued by public offerings and bonds issued by private placements. The U.S. Securities and Exchange Commission stipulates that securities raised from less than 35 specific investors are private placement bonds and are not subject to the U.S. Securities and Exchange Commission. According to regulatory restrictions, about one-third of companies use private placement to issue bonds.

1. Federal and state dual-level regulation

2. Separate supervision system

[Tips 1] In Hong Kong, China, the components of the base currency include: (1) Issued certificates of indebtedness (used to back bank notes) and banknotes and coins issued by the government; (2) Total settlement account balances of licensed banks with the Hong Kong Monetary Authority (hereinafter referred to as the HKMA); (3) Total outstanding Exchange Fund bills and bonds. [Tip 2] According to the laws of Hong Kong, China, most Hong Kong dollars are issued by three note-issuing banks, namely HSBC, Standard Chartered Bank, Issued by Bank of China (Hong Kong). When the note-issuing bank issues banknotes, it must submit to the Hong Kong Monetary Authority an exchange rate of HK$7.80 to US$1, etc. value in US dollars and credited to the Exchange Fund's accounts to purchase certificates of indebtedness to back its banknotes. Instead, recycling When Hong Kong dollar banknotes are exchanged, the Hong Kong Monetary Authority will redeem the certificate of indebtedness, and the bank will withdraw the equivalent US dollar value from the Exchange Fund. by the Hong Kong Government of China Banknotes and coins issued by the Hong Kong Monetary Authority are stored and distributed to the public by agent banks. The relationship between the Hong Kong Monetary Authority and agent banks The transactions were also settled in U.S. dollars at an exchange rate of HK$7.80 to the U.S. dollar.

For a long period of time, the bond market in Hong Kong, China, has not been fully developed, with only sporadic bond issuances. and trading activities. In the 1970s, the Hong Kong government proposed the goal of developing Hong Kong into an international financial center. At this time, the practice of issuing bonds to raise funds increased. In July 2009, the Hong Kong government launched the government bond program. The main purpose of the program is to provide risk-free bond types and promote the development of the bond market in Hong Kong, China.

Compared with the stock market, the bond market in Hong Kong started late and developed rapidly, but its overall scale is not large. In recent years, with the development of the RMB offshore market in Hong Kong, China, the Hong Kong RMB bond (commonly known as “dim sum bond”) market has The market has become a new growth point. In 2017, the “Bond Connect” program was launched between Hong Kong and the Mainland, allowing domestic and foreign institutions and individuals to access each other’s markets through the Hong Kong bond market.

banking

Securities, futures

Insurance

banking

Securities Industry

Insurance

(1) Mainly foreign currency transactions

(2) Mainly non-resident transactions (reflecting the high internationalization of the London foreign exchange market)

(3) Mainly wholesale transactions by financial institutions (mainly large multinational banks)

(4) Mainly focus on foreign exchange derivatives transactions

(5) Trading hours bridge the Americas and the Asia-Pacific continent (the foreign exchange market is a 24-hour global market)

Mainboard market (Main Market)

Alternative Investment Market (AIM)

Professional Securities Market (PSM)

Specialized Fund Market (SFS)

Elite

There are multiple trading systems in the secondary market of the London Stock Exchange, and the trading mechanisms are also different.

gilt market

international bond market

corporate bond market

After 1850, the "Five Major Gold Merchants" developed, and gold merchants traded with each other and developed offline. In 1919, the five major gold merchants created the London gold fixing mechanism. In 1987, the Bank of England led the establishment of the London Bullion Market Association (LBMA). The association is organized through membership The organization stipulates gold smelting and casting standards, trading methods, etc., and organizes over-the-counter transactions among members. LBMA continues the pricing mechanism of the five major gold merchants, but only Rothschild International Bank remains among the earliest five banks. The remaining four were replaced by Deutsche Bank, UBS, Scotiabank and HSBC. In 2004, Rothschild Bank was replaced by Barclays Bank. OK. In 2014, due to the manipulation scandal, Deutsche Bank withdrew from the bargaining house, and then the LMBA abandoned the London gold fixing price mechanism. The London gold benchmark price will also be maintained by the Intercontinental Exchange and supervised by the British Financial Conduct Authority (FCA). Tube. In 2015, after Intercontinental Exchange took over the LBMA London gold and London silver fixing prices, it carried out reforms and included price negotiations. increased to 13 (including Bank of China, Industrial and Commercial Bank of China, Bank of Communications, and China Construction Bank), every morning There will be gold auctions at 10:30 and 3:00 p.m., and silver auctions at 12:00 p.m. London on the day of the auction Gold and London silver benchmark prices (USD prices).

The Bank of England Act 1946 stipulates that, with the approval of the Treasury, the Bank of England can direct banks’ operating practices. guidance, but not put into practice. 17 It was only in 1973 that the liquidity crisis of securities companies and a large number of small and medium-sized banks appeared for the first time in the UK. The importance of financial regulation. The Banking Act of 1979 was enacted, formally giving the Bank of England financial regulatory powers. In the same year, the Depositor Protection Act was enacted After the announcement, financial supervision gradually got on the right track and a separate supervision pattern based on self-regulation was established. 2.FSA unified supervision period In 1986, in order to cooperate with the privatization reform of state-owned enterprises, the Thatcher government launched the financial "big bang" reform. Commercial banks have acquired securities brokers one after another, and a number of financial groups have emerged. Separate supervision is increasingly unsuitable for comprehensive operations. development needs. The revised Bank of England Act in 1998 gave the Bank of England monetary policy independence and imposed restrictions on deposits. The agency's supervisory responsibilities are transferred to the Securities and Investments Authority, but financial stability responsibilities are retained. In 2000, the Financial Services Act was implemented, and in 2001, the unified regulatory agency, the Financial Services Authority (FSA), was formally established. Responsible for the prudential supervision of banking, securities, and insurance financial institutions, and a unified supervision system was established. To strengthen supervision For management cooperation, the Ministry of Finance, the Bank of England and the FSA signed a memorandum of understanding to establish a tripartite committee. President. The Ministry of Finance is responsible for the establishment of the financial regulatory system and related legislation, as well as negotiations and coordination with the European Union. 3. Supervision model with parallel macro-prudential and micro-behavior supervision The global financial crisis in 2008 severely damaged the British financial industry, especially the liquidity crisis of Northern Rock Bank, which triggered The first bank run in the UK since 1866 has once again triggered social reflection on the regulatory system. After the crisis, the UK comprehensively adjusted its regulatory agency settings with the core of building a strong central bank: at the Bank of England The Financial Policy Committee (FPC) is established under the Bank of England and is responsible for macro-prudential management; the FSA is revoked and a prudential supervisory authority is established under the Bank of England. The Financial Conduct Authority (PRA), which is jointly responsible for micro-prudential supervision with the separately established Financial Conduct Authority (FCA); clarifies that the Bank of England Act as a bank resolution agency and grant broad resolution powers; establish a multi-level regulatory coordination mechanism to clarify the Bank of England’s The division of responsibilities between the Bank of China and the Ministry of Finance in crisis response. On April 1, 2013, the new Financial Services Law came into effect, and the new financial regulatory framework officially came into operation.

①At this stage, the UK is the country with the fastest development and greatest influence in the global financial market.

②The U.S. financial market began with the purchase and sale of government bonds

①The British hegemony was gradually replaced by the United States

②Changes after the Great Depression

The rise of Europe and Japan and the beginning of global economic and financial integration

At this stage, in order to get rid of poverty, developing countries have carried out financial reforms and supported financial liberalization through financial liberalization policies. the country’s financial markets. Emerging financial markets have an increasing impact on international financial markets. global loose gold Financial supervision, technological innovation, financial innovation and asset securitization have created favorable external conditions for the rapid development of financial markets in various countries. condition

From 2007 to 2009, a subprime mortgage crisis that began in the United States gradually evolved into a global financial crisis, and the world economy experienced a major The toughest test since the recession. After the crisis, governments around the world are reflecting on the underlying causes of the crisis. Tighter financial regulation

deposit taking institution

central bank

Other financial companies

As customers of financial companies, non-financial companies have an important role in the health and stability of financial companies. meaning. Non-financial companies refer to a type of institutional entity whose main business is to Provide products or non-financial services at reasonable prices

As customers of financial companies, non-financial companies have an important role in the health and stability of financial companies. meaning. Non-financial companies refer to a type of institutional entity whose main business is to Provide products or non-financial services at reasonable prices

It refers to a unit that exercises legislative, judicial and administrative power over other institutional units within a specific area. Bit. The government has the power to tax, borrow, distribute goods or services to all or part of society, and Redistribute income. The government can influence and be affected by the activities of financial firms

The public sector includes general government, central banks and deposit-taking sectors as public corporations and other ministries The entity in the door. Public corporations are defined as non-financial or financial corporations that are controlled by a government agency.

Long-term capital flows (more than 1 year or no specified use period)

Short-term capital flows (1 year or less)