Let's gain a little more insight into which type of transactions dominate the FX market. And all data we will see here has been taken from the Triennial Central Bank Survey of foreign exchange and OTC derivatives markets in 2016 by the BIS. First, let's have a look at where trading actually takes place. As we can see on this pie chart, the UK, i.e., London, is a location with the highest share in the foreign exchange market by far, with almost 40% of all transactions happening here on average. The US, i.e., New York, is the second largest center. The remaining share is split across a range of other countries, which all play significantly smaller roles. Now, the reason why London dominates the foreign exchange market reflects that its time zone overlaps with Asia and US, which makes it well-positioned for a global trading hub. When we break down the daily transactions into currency pairs, we see that, as expected, the US dollar is clearly the dominating currency. According to the BIS, "The US dollar was on one side of 88% of all FX transactions that took place over the 2016 survey period." The single most actively traded currency pair was euros versus US dollar, followed by US dollar versus Japanese yen, and US dollar versus the pound. Now, the last breakdown we want to have a look at here is the breakdown by instrument class. In other words, which instruments are mainly traded in the FX market. As for any other asset class, there are multiple instruments available that refer to foreign exchange, and in general, we can distinguish the so-called spot instruments from derivatives. In a spot trade, the agreement is made to exchange the two currency amounts involved immediately, which, in financial markets, usually means two business days after the trade has been agreed. In case of derivatives, there usually is a long gap between the trade date and the actual settlement. In case of FX forwards, for example, the price for an FX transaction is agreed today, but the exchange of the two currency amounts is agreed to take place in, for example, 12 months from now. Other derivatives only gives the buyer of the currencies a right to buy this currency at the agreed upon price in the future but not an obligation to do so. And these instruments are known as FX options. As we can see, the share of derivative transactions in the FX market significantly exceeds the share of spot transactions in foreign exchange.