Hi Guys,
Investment management firms uses the foriegn exchange market to facilitate transactions in foreign securities. For example, an investment manager bearing an international equity portfolio needs to purchase ans sell several pairs of foreign currencies to pay for foreign securities purchases.
Some investment management firms also have more speculative specialist currency overlay operations, which manage client's currency exposures with the aim if generating profits as well as limiting risk. While the number of this type of specialist firms is quite small, many have a large value of assets under management and, hence can generate large trades.
Investment management firms uses the foriegn exchange market to facilitate transactions in foreign securities. For example, an investment manager bearing an international equity portfolio needs to purchase ans sell several pairs of foreign currencies to pay for foreign securities purchases.
Some investment management firms also have more speculative specialist currency overlay operations, which manage client's currency exposures with the aim if generating profits as well as limiting risk. While the number of this type of specialist firms is quite small, many have a large value of assets under management and, hence can generate large trades.
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