MTFs facilitate financial instrument exchange between multiple parties in Europe. Operated by market operators or investment banks under MiFID II framework. Electronic systems match buyers with sellers through matching software
Commercial refers to business activities intended for profit. Non-profits and government agencies operate on non-commercial basis. Commercial can also mean paid advertisements on media channels
CME Term SOFR serves as global benchmark for new U.S. dollar lending. Replaces USD LIBOR for business loans and legacy LIBOR as fallback rate. As of April 2024, $5.7T in loans and $2.1T in OTC derivatives
Derivatives market trades financial instruments derived from other assets. Market divided into exchange-traded and over-the-counter derivatives. European derivatives market has €660 trillion notional amount
Zero-sum games occur when one player's gain equals another's loss. Cake cutting, poker, chess, and sports are typical examples. Futures contracts and options are also zero-sum games
Financial markets consist of debt, equity, money, and capital markets. Interest rates affect bond prices and are influenced by risk and term structure. Financial markets are generally considered efficient according to the Efficient Market Hypothesis