TAILIEUCHUNG - The Foreign Exchange and Interest Rate Derivatives Markets: Turnover in the United States, April 2010

The term of the loan refers to the time period over which you have the money. If it is an amortising loan, it is the time until the loan is paid off. For an amortising loan, the longer the term the lower the monthly payments (since you spread the repayment of the loan over a longer period). However, increasing the term of the loan also increases the total cost of a loan since you will be making payments for longer. Therefore, when taking out a loan, the consumer should focus on the total cost of the loan, as well as the monthly payments | The Foreign Exchange and Interest Rate Derivatives Markets Turnover in the United States April 2010 Federal Reserve Bank of New York Turnover in the United States April 2010 1 The Foreign Exchange and Interest Rate Derivatives Markets Turnover in the United States April 2010 Background The Federal Reserve Bank of New York together with fifty-three other central banks conducted a survey of turnover in the over-the-counter OTC foreign exchange and interest rate derivatives markets for April 2010. This worldwide cooperative effort is undertaken every three years and is coordinated by the Bank for International Settlements BIS . The triennial survey is a comprehensive source of information on the size and structure of the OTC foreign exchange and derivatives markets. These markets trade private bilateral contracts therefore no turnover statistics are available as they are for the organized exchanges. Data for exchange-traded futures and options are excluded from the survey. To measure the OTC markets the dealers that make markets in foreign exchange and interest rate derivatives reported trading volumes for April 2010 to the central banks in the countries where they are located. The participants reported separately the volume of trading they conduct with each other to permit adjustments for double reporting. The central banks then compiled national aggregates from the dealers data and the BIS compiled global totals from the central banks national See Annex I for a complete description of survey terms and methods. In 2010 a total of twenty-four dealers in the United States participated in the foreign exchange part of the survey and nineteen in the interest rate derivatives part down from thirty-three and twenty-eight respectively in 2007. The decline is attributable to the consolidation of firms in 2008 and the exit of some dealers from the . market. Participating dealers were commercial banks . offices of foreign banking organizations and securities .

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