**4. The main players in the international financial markets and financial capital flows**

### **4.1 The most important international financial centers and their indicators of the financial capital flows**

#### *4.1.1 American stock exchange - New York stock exchange*

New York is currently the most important market or international financial center, due to the large volume of capital traded in it, and the importance of pressure and influence exerted by the Wall Street Stock Exchange on the rest of the international financial centers in the world, which increased the importance of the American financial market as well, the situation The dollar's distinction in the international monetary system [23].

New York emerged as an international financial center after World War II, when in (1954) two-dollar loans were issued to Belgium and Australia, amounting to (55) million dollars, and the New York Stock Exchange developed during this period. In the mid-sixties, long-term investments in foreign bonds amounted to (5.7) billion dollars, and most of them were directed to European foreign banks [23].

In (1962), the total amount of bonds issued by the American stock market reached a record high of (1146) million dollars, and this amount exceeded the sum of foreign loans issued in England, Switzerland, Germany, the Netherlands, and Austria, all combined. In (1972), the volume of trading in the New York Stock Exchange amounted to about (71.2) billion pounds, and this exceeds the total trading in (London, Tokyo, and Zurich) combined [16, 35].

During the period (1981–1987), the foreign capital employed in the American financial markets amounted to about (920) billion dollars, the majority of which was invested in US government bonds - to contribute effectively to covering the ongoing public budget deficit.

The American stock exchanges have become the most important markets in the world, as the value of the total financial investment tools registered in the American financial market represents from 30–60% of the value of capitalization in global stock exchanges, whether for stocks or bonds [36].

### *4.1.2 Characteristics of the US financial market*

The rules of dealing in the New York Stock Exchange and the American stock market require that all sales and purchases be done by public auction and with a loud and audible voice, hence the prohibition of secret exchanges completely, in addition to the fact that the broker may not complete the purchase or sale requests received by him from His customers without displaying them in the hall by way of public auction [37].

American financial markets are characterized by a set of characteristics, the most important of which are [17, 38]:


#### **4.2 British stock exchange - London stock exchange**

London is the most important European financial center and ranks second after New York in the world. The activity of the London Stock Exchange dates back to the seventeenth century (17th century) when the British government and some major commercial companies began to raise capital through the sale of shares and bonds. With the increase in the volume of financial investments, a type of dealer appeared that plays the role of mediation between sellers and buyers of securities, and stock dealers - after they met in London cafes - moved to a private building to practice their activities [39].

London began to gain its importance as an international financial center during the nineteenth century (Q19) when British overseas investment reached its limits. After the First World War, the fame of the British financial market was affected by the great competition from the New York Stock Exchange, in addition to the negative impact of the economic crisis of (1929) on the role of London [40].

After World War II, London was able to return to the international financial arena by providing loans in Euro-Dollars. The London Stock Exchange plays two main roles, as it represents a source of capital for the British and foreigners, and it is considered a global center for dealing in securities. The British net revenues from financial services witnessed during the second half of the twentieth century, *Perspective Chapter: International Financial Markets and Financial Capital Flows... DOI: http://dx.doi.org/10.5772/intechopen.102572*

and the following table represents the development of this development during the period (1970–1980) [6, 41].

Statistics and studies indicate that the number of securities registered on the London Stock Exchange is more than (6000) shares, estimated at 50% of the total securities registered in the European financial markets, of which (2000) shares are for international and European companies. This area, because most of the bonds issued in the international financial market are registered in the London market [42].

The London financial market is characterized by a special system related to the means and methods of carrying out operations. It is not an auction market like other international financial markets but rather deals with negotiation and bargaining.

The broker in the London Stock Exchange is limited to mediating between the client and the jobbers, which is similar to the wholesaler in the commodity markets, as the jobber does not deal with the public, but sells and buys securities for his account, even if he works in the name and under the responsibility of one of the stock brokers [36].

The jobbers are a group of members of the London Stock Exchange, where they perform the function of "Market Makers", and their number is thirteen (13) traders dealing with stockbrokers.

Several characteristics also characterizes the London Stock Exchange, namely [3, 29]:


The London Financial Market is also divided into the stock market, bond market, futures market, and foreign exchange market.

The Paris Stock Exchange and the Tokyo Stock Exchange, the Cairo Stock Exchange,and the United States of America Stock Exchange.

#### **4.3 Paris stock exchange**

Before the First World War, France played an important role in the international financial market, because the large amounts of capital accumulation and the limited use of it in the productive areas inside France helped French banks to assume their position in financing international trade operations and providing loans to other countries. The French financial market began to gain more importance during the second half of the twentieth century, due to the high rates of economic growth and capital accumulation within France [36, 43].

This is despite the fact that the Paris Stock Exchange faced some obstacles that limited the expansion of its financial activity, such as restrictions imposed on foreign direct investments in France and control over the issuance of foreign securities and loans obtained by French companies from abroad [44].

This is despite the fact that the Paris Stock Exchange faced some obstacles that limited the expansion of its financial activity, such as restrictions imposed on foreign direct investments in France and control over the issuance of foreign securities and loans obtained by French companies from abroad. In the French financial market, most dealing is done in bonds, and the government sets the conditions and criteria for registering foreign securities and the way they are traded in the market. That is why French financial markets are known as governmental management and decision [45].
