Wholesale Market Activities

Definition ∞ Wholesale market activities pertain to large-scale financial transactions conducted between institutions, such as banks, corporations, and governments. These activities involve significant volumes of assets and are typically not accessible to individual retail clients. They include interbank lending, large-value securities trading, and foreign exchange operations. These markets form the backbone of the global financial system.
Context ∞ The potential for distributed ledger technology to transform wholesale market activities is a frequent topic in financial news, particularly concerning central bank digital currencies and tokenized assets. Discussions often center on improving settlement efficiency, reducing counterparty risk, and increasing transparency in these high-value transactions. Regulators and financial institutions are actively exploring how DLT can streamline operations and reduce costs within wholesale markets while maintaining stability.