External market

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External market

Also referred to as the international market, the offshore market, or, more popularly, the Euromarket. A mechanism for trading securities that at issuance (1) are offered simultaneously to investors in a number of countries and (2) are issued outside the jurisdiction of any single country. Related: Internal market.

External Market

The market or trade of any securities that are offered to investors in multiple countries and are outside the jurisdiction of any particular country. For example, a British company may issue a bond on an external market if it issues it in Germany and France and denominates it in U.S. dollars. External markets are also called euromarkets. It is important to note, however, that the term has nothing to do with the euro, and the prefix "euro-" is used more generally to refer to deposits outside the jurisdiction of the domestic central bank.
References in periodicals archive ?
Indeed, the new reality of euromarkets and pressures from foreign governments over the trade surplus are destabilizing.
It was the initiatives of these two nations that produced the Euromarkets and unleashed a process of competitive deregulation.
These alternatives arose in the government bond markets (developed to finance the rising deficits in those decades), the Euromarkets, and in various nonbank activities.
Glasner notes that there has been nothing stopping banks already from issuing private currencies in the euromarkets. They have chosen, however, to continue to denominate their transactions in existing national currencies, a choice that may give some indication of the likelihood of new private currencies being developed by the stored value device issuers.(49) Not only are existing national currencies more familiar, but various institutional frameworks--from clearing networks to legal provisions to lender-of-last-resort facilities--are specifically designed for their use.
During these years, finance was, however, gradually regaining its position both in domestic and international spheres (in particular in the development of Euromarkets).
A note issuance facility is a financial tool used by a borrower to issue short-term securities in the Euromarkets. Note issuance facilities can be differentiated from other short-term financing measures, such as commercial paper, by the underwriting commitment component.
Given the proliferation of Euromarkets and other financial processes that are virtually impossible for individual governments to control, the reimposition of barriers to capital mobility seems most unlikely.(37) The integration of financial markets may yet be the death knell of social democracy.
(1991), 'Corporate finance in the euromarkets and the economics of lntermediation',CEPR Discussion Paper 570.
In Europe, the major securitization so far has been the movement of customers in countries without strong indigenous securities industries to the Euromarkets for Eurobond and Eurocommercial paper, plus the growth of the mutual funds industry in many countries.
To some extent, the distinction between banking and securities business has already become blurred, as Japanese banks have set up securities subsidiaries in the Euromarkets and foreign banks have engaged in securities business in Japan.
But over an extended period, rather than as an isolated incident, such treatment will not foster stable international transactions, or the sustained predominance of the dollar in Euromarkets.