Investors appear to have incorporated into current equity price levels both robust profit expectations and low compensation for risk. As the economy slows to a more sustainable pace as expected, profit forecasts could be pared back, which together with a greater sense of vulnerability in business prospects could damp appetites for equities.
These transactions include foreign currency transactions, interbank and interdealer repo transactions, and interbank fund transfers. It is also worthy to note that this interconnectivity comes at very minimal cost. This is because the infrastructure is already in place; all that needed to be done was minimal reconfiguration of the existing systems to capture these additional types of financial transactions.