As the oldest international financial center in the world, London's foreign exchange market is the earliest in the world. Long before the First World War, the foreign exchange market in London had begun to take shape.
2.？ 1979 10 in June, Britain completely abolished foreign exchange control, and the foreign exchange market in London developed rapidly. There are about 600 banks in the City of London, and almost all major international banks have branches here, which greatly enlivens the trading in the London market.
Due to its unique geographical location, London is located at the intersection of two major time zones, connecting the Asian and North American markets. When Asia closed, London just opened. At this time, new york was the beginning of a working day, so trading was extremely active during this period. London became the largest foreign exchange trading center in the world, which had an important impact on the trend of the entire foreign exchange market.
London foreign exchange market has advanced modern electronic communication network. Although the London foreign exchange market is a world-wide foreign exchange trading center, it is different from some countries in continental Europe that conduct foreign exchange transactions in a certain place, and there is no specific trading place in the London foreign exchange market. In the London foreign exchange market, approved foreign exchange brokers (including clearing banks, commercial banks, branches of foreign banks in London and other financial institutions) have complete telecommunication network equipment, and with the help of special intercom phones and sensitive electronic equipment, they can handle various spot and forward foreign exchange transactions quickly and flexibly.
5. As the London session undertakes two main trading sessions, Tokyo and new york, and as London is an important financial center in the world, the foreign exchange trading volume in this session is very large. This leads to higher market liquidity and lower potential transaction costs.
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