wilmott.com

Posted: **December 8th, 2017, 1:28 pm**

In Principles of Financial Engineering, Salih Neftci explains the difference between "on shore markets" (or local), and "Euromarkets". He writes:

Onshore markets can be "organized as OTC or as formal exchanges".

and

The Euromarket has nothing to do with Europe or the Euro,
but rather, it simply means that we are dealing with markets
that are outside the formal control of regulators and central
banks. The two most important euromarkets are the
Eurocurrency market and the Eurobond market. In principle
a Eurobond can be sold in Asia.

Is he comparing onshore and offshore markets? Are offshore markets really called the Euromarket?

Posted: **December 17th, 2017, 7:05 pm**

In a word, sort of. Consider the market for Eurodollars, which is vast. This is a loan market for US Dollars when the counterparties are two non-US banks. The generalization that he is making is when as asset "belonging" to economy A is being traded by two parties that are outside of A.

wilmott.com

Question - Principles of Financial Engineering (Neftci)

Question - Principles of Financial Engineering (Neftci)

Re: Question - Principles of Financial Engineering (Neftci)