Page 37 - FINAL CFA SLIDES DECEMBER 2018 DAY 6
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Session Unit 5:

                                                                                           20. Currency Exchange Rates


    LOS 20.b: Describe functions of and participants in the foreign exchange market.., p.158




      Sell side participants:                                                Buy side participants:

      • Multinational banks                                                  • Multinational corporations,

      • Investment fund managers,                                            • Investment fund managers,
      • Hedge fund managers, and                                             • Hedge fund managers,

      • Governments.                                                         • Investors,

                                                                             • Governments, and

                                                                             • Central banks (the buy side).






         Participants are termed:
         • Hedgers if they enter into transactions that decrease an existing foreign exchange risk;

         • Speculators if they enter into transactions that increase their foreign exchange risk.
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