The money market is a general term for the markets
in which banks lend to and
borrow from each other, or trade financial
instruments such as Certificates of Deposit (CDs). The market
normally trades in maturities up to one year. It provides short
to medium term liquidity
in the global
financial system. Derivatives of the money market include forward
rate agreements (FRAs) and futures.
Trading takes place between banks in the "money centres" (New York and London primarily, also Chicago, Frankfurt, Singapore, Hong Kong, Tokyo, Toronto, Sydney).