A means of financing international trade transactions through credit extended by a commercial or merchant bank to a foreign importer deemed creditworthy.
In the UK, the discount market refers to a segment of the money market where banks, discount houses, and bill brokers engage in the discounting of bills and short-term financial instruments to facilitate liquidity and profitability.
The interbank market is a global network of financial institutions engaged in lending and borrowing activities, primarily focused on short-term loans and foreign exchange transactions.
Economic analysis developed by John Maynard Keynes based on the interaction of the money market and the goods market. It helps predict the effect of monetary and fiscal policies on interest rates and domestic production.
Lombard Street is a key financial district located in the City of London, renowned for being the historical heart of the money market. It houses many commercial banks, bill brokers, and discount houses, with the Bank of England nearby.
The London Interbank Bid Rate (LIBID) is the interest rate at which banks bid for funds to borrow from one another in the London interbank market. It is considered the counterpart to the London Interbank Offered Rate (LIBOR).
The money market is a wholesale financial market dedicated to short-term borrowing and lending with instruments like Treasury bills, trade bills, and bills of exchange, traditionally concentrated in areas like Lombard Street in London.
The interest rate at which major banks lend to one another on the overnight market, typically utilized for short-term funding. Indexes of the average overnight rate, such as SONIA and EONIA, provide key reference rates in financial markets.
A Repurchase Agreement, commonly referred to as a Repo or RP, is a common financial instrument involving an agreement between a seller and a buyer, typically involving U.S. government securities, where the seller agrees to repurchase the securities at a specified price and time.
The trading desk at the New York Federal Reserve Bank is the operational arm of the Federal Open Market Committee (FOMC), responsible for executing all transactions undertaken by the Federal Reserve System in the money market and government securities market. It also serves as the Treasury Department's monitor and handles foreign exchange market transactions.
The date on which a transaction in the money market took place.
A trade association for UK brokers operating in the money markets, the WMBA is responsible for providing key indices like SONIA and EURONIA for overnight lending in sterling and euro markets respectively.
