Resumen
This article evaluates the effect of the Internet on international financial transactions, particularly foreign exchange trading. The Internet, together with deregulation and globalization, has engendered a wave of hyper competition and coming of new exchanges, markets, and distribution channels providing opportunities for cost reduction and strategic advantage. Entrepreneurs, individual financial institutions, and banking consortia are all competing vigorously to gain a foothold in the market for electronic foreign exchange (eFX) platforms. The interrelationship between technological change and market structure in the context of foreign exchange markets, identifying critical management, economic, and technical phenomena, have been emphasized. It is observed that eFX platforms are driving forex markets toward commoditization, complete transparency, improved efficiency, and end-to-end automation via straight- through processing.