Intended for courses in financial markets, capital markets and institutions. Using an international focus, this text integrates the financial markets with the activities of financial intermediaries. This approach should enable students to understand the role of financial intermediaries in the development of financial markets. Throughout the text, the emphasis is on "how things are done on the street." The origins, major participants, pricing and settlements and typical transactions for all financial markets are also included. The book features: explanations with recent applications of quantitative models; an international focus integrated throughout text; a chapter dedicated to international central banks including Bundesbank, the Bank of England and the Bank of Japan; a chapter on settlements highlights the importance of settlement risk in global financial transactions; and "Border Crossings" sections before each part of the text look backwards and forwards, letting students apply what they have learned to future chapters.