Bank of International Settlements
What is the Bank for International Settlements (BIS)?
The Bank of International Settlements (BIS) is a financial institution that operates in an international realm. The BIS was founded in 1930 through Hague’s agreement that brought together ten central banks. Today, the BIS consists of 63 central banks. The represented countries account for 95 percent of the global Gross Domestic Product (GDP). It is headquartered in Basel, Switzerland. Hong Kong and Mexico host two additional representative facilities (Lessambo, 2015). The BIS enjoys independence from the Swiss government because its employees are not subjected to Swiss taxes. The financial institution is also exempted from the same taxes and Swiss legal jurisdictions.
What three categories does the BIS designate in the foreign exchange market? Briefly describe each.
The main categories include reporting dealers, non-financial entities, and other financial institutions. The reporting dealers are institutions in the finance sector that are actively involved in both global and local derivative and foreign exchange markets. These are mainly the largest and most renowned financial institutions in trading foreign exchanges. They include Morgan Stanley, Goldman Sachs, UBS, Deutsche Bank, JP Morgan, Citi, Credit Suisse, and HSBC.
Non-financial entities are players who take part in the foreign exchange markets but are not financial institutions. They include governments and organizations. Other financial institutions are those that do not fall under the reporting dealers category. They include small banks, money market funds, pension funds, hedge funds, currency funds, and security houses, among others. Each of the categories plays a different role in the foreign exchange market (Daniels, Radebaugh, & Sullivan, 2019).
References
Daniels, J. D., Radebaugh, L. H., & Sullivan, D. P. (2019). International Business: Environments and Operations. New York: Pearson.
Lessambo, F. (2015). The Bank for International Settlement. In International Financial Institutions and Their Challenges (pp. 83-90). New York: Palgrave Macmillan.
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Question 
Bank of International Settlements
What is the Bank for International Settlements (BIS)? What three categories does the BIS designate in the foreign exchange market? Briefly describe each category.
International Business- Environments & Operations
John D. Daniels, Lee H. Radebaugh & Daniel P. Sullivan, 2018
Pearson