1.1.4 Intermediaries Operating in Financial Markets

This topic describes the intermediaries operating in Financial Markets.

Table 1-3 Intermediaries

Intermediary	Market	Role
Stock Exchange	Capital Market	Secondary market for securities.
Investment Bankers	Capital Market Credit Market	Corporate Advisory services, Issue of securities.
Underwriters	Capital Market Money Market	Subscribe to un-subscribed portion of securities.
Registrars Depositories Custodians	Capital Market	Issue securities to the investors on behalf of the company and handle share transfer activity.
Primary Dealer Secondary Dealers	Money Market	Market making in government securities.
Forex Dealers	Forex Market	Ensure exchange in currencies.

In a market, which is not well regulated, these intermediaries increase the risks for the investor. To prevent any misappropriation of the lenders’ funds and to reduce the risks of the investors a well-regulated environment has to be developed. With markets in various countries, harmonizing their regulations, these financial intermediaries are now becoming global players.