​Investment Banks 
Investment banks arrange finance and advice for companies that want to float on the stock market. Investment banks also raised additional finance by issuing further bonds or shares and carry out mergers and acquisitions. 
Investment banks also have the role of providing services for the institutional firms which want to invest in shares and bonds such as asset managers and pension funds. 
Specifically, the roles of investment banks may include the following services: 
-Trading securities in equities, bonds and derivatives and the provision of broking and distribution facilities. 
-advisory work and finance raising both for government and companies. 
-assisting corporate clients in issuing new securities to raise capital 
-advising on mergers and acquisitions 
-treasury dealing for corporate clients in currencies 
-financial engineering services to protect them from fluctuation of the exchange rates and interest rates 
-manage the investments for sizeable investors such as corporate pension funds, charities, and wealthy private clients. 

​Insurance Market 
Insurance market is the market that regulates the personal risk, corporate risk and protection of life events. 
The largest insurance markets include, United States, Japan, China and the United Kingdom.
The major players who dominate the insurance activity include AXA, Allianz or China Life and Llyod’s. 
Llyod’s is one of the largest insurance organization in the world. Llyod’s is known for its reputation for innovation such as developing policies for burglary, aviation and cybercrime. It brings unusual specialist and complicated risks.
Llyod’s insures specialist and complex risk in casualty, energy, property, motor, marine aviation and reinsurance.
Reinsurance industry is when the insurers protect themselves by using reinsurance companies. 
An insurer may hedge some of the risks associated with insurance policies it has written by laying off some of that risk with a reinsurer. The contract of reinsurance may cover an entire portfolio of insurance or single risk. It may involve sharing the losses and premiums or just those exceeding a threshold. It may also cover large one off risks such as satellites, major constructions or large sporting events. 
The largest reinsurers in the world are Munich Re, Hannover Re, Swiss Re, Berkshire Hathaway and Llyod’s.

Derivatives 
Derivatives markets trade a range of complex products based on the underlying instruments such as indices, interest rates, currencies, commodities and credit risk.
The derivatives are available both on the OTC market and exchanged traded market. 
An OTC market is where the trading occurs directly between parties. Europe still dominates the OTC trading of the derivatives. Based on the notional amounts outstanding, the OTC derivatives markets are about 4 times the size of stock quoted in the stock exchanges. 
 However, trading of derivatives are started to move from OTC market to exchanged traded market. 
Chicago Mercantile Exchange is considered the largest exchanged traded derivatives market. 
Interest rate derivatives contracts are the most common form of outstanding derivatives contracts through the interest rate swaps. 
The interest rates derivatives markets are dominated by the US dollar and Euro. The growth in the derivative market is due to the stock market crash in 2000-2002as traders sough to hedge their position against interest rate risk. 
The second largest segment is foreign exchange derivatives which are used to speculate on currency movements and hedge the risks of currency positions.

Foreign Exchange Markets
The largest financial markets are the foreign exchange markets with an average daily turnover in excess of USD 6.6 trillion.
Supply and demand is considered in determining the strength of one currency in relation to another and the rate at which one currency is exchanged with another currency. 
For instance, if there is a strong demand from Euro investors for US dollars, the US dollars will rise in value relatives to Euro. 
The foreign exchange markets are active which enable individuals, companies and government to deal with the cash flow and cash inflow denominated in other countries. These foreign exchange markets are provided by the banks.
Each of the banks will provide rate of exchange at which they are willing to buy or sell the currencies. 
Most of the foreign exchange deals were arranged in the telephone. However, nowadays, electronic trading is prevalent. 
Foreign exchange may be in the form of over the counter market where brokers or dealers negotiate directly with one another There is no central exchange or cleaning house. Foreign exchange market is concentrated in a small number of financial centers. 

​Bond Markets
Bond markets are larger in value and size than the equity market. However, it is less well known than the equity market.
The amount of global bond market in general is around USD 100 trillions. 
The largest issuers of bond are the government followed by financial corporations.
Domestic bond market accounts for 70% of the total bond market while the remainder is the international bond market. 
The domestic bonds are issued by governments and companies while the international bonds are issued by the companies, governments and supranational agencies such as world bank. 
Trading in international bonds is predominantly happens in European market. 

​MTF(Multilateral Trading Facilities) 
MTF  is also known as multilateral trading facilities. It is a system that arises due to the development of technology and communication networks. The system is   known for its matching engine or crossing networks which operated by an investment firm or other market operator. 
It brings together multiple parties which are interested in buying and selling financial instruments such as shares, bonds and derivatives. 

Stock Exchange in The World 

US Stock Exchange Market 
There are two most popular US stock exchange market which are NYSE and NASDAQ
NYSE is also known as New York Stock Exchange and it is the largest stock exchange in the world. The domestic market capitalization is around USD 22 trillion. 
The second largest stock market exchange is NASDAQ in America with a domestic market capitalization is around USD 10 trillion. 

Japan Exchange Group 
The third largest stock exchange in the world is the Tokyo Stock Exchange which is part of the Japan Exchange Group and has a domestic market capitalization of over USD 6 trillion. 

Shanghai Stock Exchange 
Shanghai Stock Exchange is the fourth largest in the world with domestic market capitalization around USD 5 trillion. 

European Stock Exchange 
London Stock Exchange ( domestic capitalization of over USD 4 trillion), SIX Swiss Exchange and Deutsche Borse are considered as the largest stock exchange in Europe.

​Shenzen Stock Exchange
Shenzen Stock Exchange is the 8th largest stock exchange with a domestic capitalization of around USD 3 trillion. 

Middle East Stock Exchange 
Tadawul is the largest Saudi Stock Exchange with a domestic market capitalization of around USD 2.5 billion. 

​Equity Market 
Equity market facilitate the shares trading in quoted companies. 
The global market capitalization is the total value of the shares quoted on the world stock exchange. 
The global market capitalization was approximately over USD 84 trillions at the end of 2018. Based on the data provided by the World Federation of Exchanges.

​The Retail Financial Services Sector 
The retail financial services sector provides services in the form of retail banking which includes current accounts, deposit accounts, credit cards and lending. 
Insurance services may cover the range of life assurance and protection solutions for area such as critical illness cover, medical insurance, motor insurance, property insurance, mortgage protection and income protection.
Financial planning and advice services cover in assisting individual to understand and plan for their financial future. 
Pensions may include the investment accounts designed to capture savings during a working life of a person and provide benefits on retirement. 
Investment services ranging from execution only stockbroking, wealth management service and private banking. 

​The Wholesale Financial Services Sector

The wholesale activity of the financial services sector includes equity markets, bond markets, foreign exchange, derivatives and insurance markets. 
Equity markets involve the trading of the quoted shares. 
Bond markets involve the trading of the corporate, supranational or government debt
Foreign exchange involves the trading of the currencies 
Derivatives involve the trading of the swaps, options, future and forwards
Insurance markets involve the corporate insurance, professional indemnity, reinsurance, captive insurance and risk sharing insurance.
Other activities in wholesale sector include fund management, investment banking and custodian banking 
Fund management includes managing the investment portfolio of collective investment schemes, insurance funds and pension funds. 
Custodian banking provides services for the asset managers such as the safekeeping of the assets, settlements, administration of the underlying investments and corporate actions. 
Investment banking is a banking service tailored to organization such as mergers and acquisition, fixed income trading, private equity and equity trading.