In economics, a market is defined as a set of arrangements whereby buyers and sellers contract to exchange goods or services. An international financial market works on exactly the same principles. Financial instruments and services, which range from currencies and private banking services to futures for pork bellies, are traded. A market clearing price is established when demand is just equal to supply. The most important types of international fianncial markets are the international money markets, international bond markets, international stock markets and derivative markets. The major global financial centres are London, New York and Tokyo, but there are also important off-shore centres such as Switzerland and Hong Kong.

Issues for the future include the co-ordination of international financial regulation, along the lines of the Basle agreements on capital adequacy, the increasing domination of global markets by large financial conglomerates and the extent to which rapid financial innovation could undermine the existing system. New technology, which is increasing the speed with which information can be transmitted, may reduce the need for discrete centres such as London and New York, although in fact technology tends rather to increase centralization which could lead to still more concentration.