"It was very active, with trading heavy and characterized as a liquid market," he said.

"When that happens, people start selling the most liquid market and that's foreign exchange."

It was backed by a stable Government and traded in a large liquid market.

The foreign exchange market is the most liquid financial market in the world.

But the strategy assumed a liquid market into which they could sell stocks whenever the need arose.

The fixed costs of creating liquid markets for new financial instruments appears to be considerable.

Industry executives said the regulation, known as Rule 144a, would give corporations greater ability to raise capital in a more liquid private market.

Those three are the most liquid markets and dwarf all the others.

A less liquid market could have unfavourable effects on the cost of raising capital.

The mark to model process is used by all financial instiutions where a deep and liquid market does not exist.