rious financial centres. A survey by the Bank of England in April 1998 found that daily turnover in Britain on the London market had increased by 37 per cent since the previous survey in 1995.Dealing is conducted entirely by phone or electronically, between the banks, other financial institutions, and a number of firms of foreign exchange brokers which act as intermediaries. The institutions keep close contact with financial centres overseas and quote buying and selling ratesThroughout the day for both immediate (“spot”) and future (“forward”) transactions. 52As London is the biggest international financial centre by far in Europe, its wholesale markets were well prepared for the introduction of the euro at the beginning of 1999, and the essential infrastructure for payments and settlements in euros is in place.Foreign Exchange turnover in $bn April 1998 average2.4 Financial futures and options:“Futures” are contracts for the purchase or sale of financial assets or commodities on a specified future date at a price agreed in the present. “Options” are contracts giving the right but not the obligation to buy or sell financial assets or commodities on a stated date at a predetermined price. Both futures and options offer a means of protection against changes in prices, in exchange rates or in interest rates. They are traded at the London International Financial Futures and Options Exchange (LIFFE).LIFFE has 235 members, including many of the world’s leading financial institutions. It provides facilities for dealing in the most internationally diverse range of futures and options products of any exchange in the world.2.5 Other markets:Other important City markets include: the London bullion market – around 60 banks and other financial trading companies participate in the London gold and silver markets the London Metal Exchange – the primary base metals market...
