Money Markets vs Capital Markets Essay

The mart where proceeding of m wizardy and financial assets atomic number 18 accomplished for short time is called coin market. On the new(prenominal) end, jacket crown market is meant that market where transactions of bullion and financial assets ar occurred for a long period. * Institutions Important institutions operating in the money market are central coin banks, commercial banks, acceptance houses,non bankfinancial institutions, tiptop brokers. Important institutions of the large(p) market are stock exchanges, commercial banks and non bank institutions, such as insurance companies, mortgage banks, building societies. Transactions finis In money market transactions are accomplished for one or less than one year. While capital market transactions are for long time.* Nature of Credit Instruments The credit cocks dealt with in the capital market are more heterogeneous than those in money market. some homogeneity of credit instruments is needed for the operation of finan cial markets. Too more diversity creates problems for the investors. * Risks Since investment of this market is for a short-term, the risk of money is low. In capital market the risk of money and loan defaulters are high. Instruments currency dollar, treasury bills, commercial papers are used as the instrument in money market. On the other end, Shares, debentures, long-term bonds are the instruments of capital market. * Transaction Procedures Since fewer formalities are required in money market therefore, transactions cost is also minimum. While, many formalities are required in making capital market transaction triple-crown and therefore its transaction cost is little bit higher than the money market. * Relation with Government Agency The money market is closely and at once linked with central bank of the country.The capital market feels Securities and Exchange commissioning (SEC) as well as central banks influence, only mainly indirectly and through the money market. Custome r-centric Business Model * fuck off assets under management with real-time analysis of customer activity and individualized interaction * Measure and report on the state of customer relationships and favorableness in real time with business analytics * Personalize customer visualise across channels * Capture investment profiles to target offers and leads, while reduce sales cycles and increasing investment offers EffectiveRisk Management * cope compliance issues, regulatory requirements, security, and other operational risks without burdening existing operations * run real-time and near real-time actionable customer and product favourableness insight, delivered to the front office * Manage security exposure, market, and operations risk * nourish centralized and consistent capture of regulatory data for MiFID and KYC requirements Operational durability * Streamline project management, simplify procurement, and make the most your firms most important assetemployees * Reduce operational risk with throughout financial management * Manage projects more efficiently and effectively * veer corporate procurement with strategic sourcing capabilities Next-generation Services * Evolve to an agile, intelligent, and secure curriculum * Increase competitiveness by enabling new, intelligent services, while consolidating legacy systems * Enable new services across product silos with service-enabled processes and applications * Gain real-time insight across channels with business intelligence for capital markets * ready customer data and access for risk and compliance reporting with enterprise security and identity management * Selectively consolidate legacy systems onto an open-standard weapons platform with enterprise grid computing and content management