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11.1.08

Mesothelioma

Mesothelioma is a form of cancer that is almost always caused by previous exposure to asbestos.[1] In this disease, malignant cells develop in the mesothelium, a protective lining that covers most of the body's internal organs. Its most common site is the pleura (outer lining of the lungs and chest cavity), but it may also occur in the peritoneum (the lining of the abdominal cavity) or the pericardium (a sac that surrounds the heart).

Most people who develop mesothelioma have worked on jobs where they inhaled asbestos particles, or have been exposed to asbestos dust and fibre in other ways, such as by washing the clothes of a family member who worked with asbestos, or by home renovation using asbestos cement products. Unlike lung cancer, there is no association between mesothelioma and smoking [2].


Signs and symptoms

Symptoms of mesothelioma may not appear until 20 to 50 years after exposure to asbestos. Shortness of breath, cough, and pain in the chest due to an accumulation of fluid in the pleural space are often symptoms of pleural mesothelioma.

Symptoms of peritoneal mesothelioma include weight loss and cachexia, abdominal swelling and pain due to ascites (a buildup of fluid in the abdominal cavity). Other symptoms of peritoneal mesothelioma may include bowel obstruction, blood clotting abnormalities, anemia, and fever. If the cancer has spread beyond the mesothelium to other parts of the body, symptoms may include pain, trouble swallowing, or swelling of the neck or face.

These symptoms may be caused by mesothelioma or by other, less serious conditions.

Mesothelioma that affects the pleura can cause these signs and symptoms:

  • chest wall pain
  • pleural effusion, or fluid surrounding the lung
  • shortness of breath
  • fatigue or anemia
  • wheezing, hoarseness, or cough
  • blood in the sputum (fluid) coughed up

In severe cases, the person may have many tumor masses. The individual may develop a pneumothorax, or collapse of the lung. The disease may metastasize, or spread, to other parts of the body.

Tumors that affect the abdominal cavity often do not cause symptoms until they are at a late stage. Symptoms include:

  • abdominal pain
  • ascites, or an abnormal buildup of fluid in the abdomen
  • a mass in the abdomen
  • problems with bowel function
  • weight loss

In severe cases of the disease, the following signs and symptoms may be present:

A mesothelioma does not usually spread to the bone, brain, or adrenal glands. Pleural tumors are usually found only on one side of the lungs.

Diagnosis

Diagnosing mesothelioma is often difficult, because the symptoms are similar to those of a number of other conditions. Diagnosis begins with a review of the patient's medical history. A history of exposure to asbestos may increase clinical suspicion for mesothelioma. A physical examination is performed, followed by chest X-ray and often lung function tests. The X-ray may reveal pleural thickening commonly seen after asbestos exposure and increases suspicion of mesothelioma. A CT (or CAT) scan or an MRI is usually performed. If a large amount of fluid is present, abnormal cells may be detected by cytology if this fluid is aspirated with a syringe. For pleural fluid this is done by a pleural tap or chest drain, in ascites with an paracentesis or ascitic drain and in a pericardial effusion with pericardiocentesis. While absence of malignant cells on cytology does not completely exclude mesothelioma, it makes it much more unlikely, especially if an alternative diagnosis can be made (e.g. tuberculosis, heart failure).

If cytology is positive or a plaque is regarded as suspicious, a biopsy is needed to confirm a diagnosis of mesothelioma. A doctor removes a sample of tissue for examination under a microscope by a pathologist. A biopsy may be done in different ways, depending on where the abnormal area is located. If the cancer is in the chest, the doctor may perform a thoracoscopy. In this procedure, the doctor makes a small cut through the chest wall and puts a thin, lighted tube called a thoracoscope into the chest between two ribs. Thoracoscopy allows the doctor to look inside the chest and obtain tissue samples.

If the cancer is in the abdomen, the doctor may perform a laparoscopy. To obtain tissue for examination, the doctor makes a small opening in the abdomen and inserts a special instrument into the abdominal cavity. If these procedures do not yield enough tissue, more extensive diagnostic surgery may be necessary.

Typical immunohistochemistry results
Positive Negative
EMA (epithelial membrane antigen) in a membranous distribution CEA (carcinoembryonic antigen)
WT1 (Wilms' tumour 1) B72.3
Calretinin MOC-3 1
Mesothelin-1 CD15
Cytokeratin 5/6 Ber-EP4
HBME-1 (human mesothelial cell 1) TTF-1 (thyroid transcription factor-1)

Screening

There is no universally agreed protocol for screening people who have been exposed to asbestos. However some research indicates that the serum osteopontin level might be useful in screening asbestos-exposed people for mesothelioma. The level of soluble mesothelin-related protein is elevated in the serum of about 75% of patients at diagnosis and it has been suggested that it may be useful for screening.[3]

[edit] Staging

Mesothelioma is described as localized if the cancer is found only on the membrane surface where it originated. It is classified as advanced if it has spread beyond the original membrane surface to other parts of the body, such as the lymph nodes, lungs, chest wall, or abdominal organs.

[edit] Pathophysiology

The mesothelium consists of a single layer of flattened to cuboidal cells forming the epithelial lining of the serous cavities of the body including the peritoneal, pericardial and pleural cavities. Deposition of asbestos fibres in the parenchyma of the lung may result in the penetration of the visceral pleura from where the fibre can then be carried to the pleural surface, thus leading to the development of malignant mesothelial plaques. The processes leading to the development of peritoneal mesothelioma remain unresolved, although it has been proposed that asbestos fibres from the lung are transported to the abdomen and associated organs via the lymphatic system. Additionally, asbestos fibres may be deposited in the gut after ingestion of sputum contaminated with asbestos fibres.

Pleural contamination with asbestos or other mineral fibres has been shown to cause cancer. Long thin asbestos fibers (blue asbestos, amphibole fibers) are more potent carcinogens than "feathery fibers" (chrysotile or white asbestos fibers).[4] However, there is now evidence that smaller particles may be more dangerous than the larger fibers.[1][2] They remain suspended in the air where they can be inhaled, and may penetrate more easily and deeper into the lungs. "We probably will find out a lot more about the health aspects of asbestos from [the World Trade Center attack], unfortunately," said Dr. Alan Fein, chief of pulmonary and critical-care medicine at North Shore-Long Island Jewish Health System. Dr. Fein has treated several patients for "World Trade Center syndrome" or respiratory ailments from brief exposures of only a day or two near the collapsed buildings.[3]

Mesothelioma development in rats has been demonstrated following intra-pleural inoculation of phosphorylated chrysotile fibres. It has been suggested that in humans, transport of fibres to the pleura is critical to the pathogenesis of mesothelioma. This is supported by the observed recruitment of significant numbers of macrophages and other cells of the immune system to localised lesions of accumulated asbestos fibres in the pleural and peritoneal cavities of rats. These lesions continued to attract and accumulate macrophages as the disease progressed, and cellular changes within the lesion culminated in a morphologically malignant tumour.

Experimental evidence suggests that asbestos acts as a complete carcinogen with the development of mesothelioma occurring in sequential stages of initiation and promotion. The molecular mechanisms underlying the malignant transformation of normal mesothelial cells by asbestos fibres remain unclear despite the demonstration of its oncogenic capabilities. However, complete in vitro transformation of normal human mesothelial cells to malignant phenotype following exposure to asbestos fibres has not yet been achieved. In general, asbestos fibres are thought to act through direct physical interactions with the cells of the mesothelium in conjunction with indirect effects following interaction with inflammatory cells such as macrophages.

Analysis of the interactions between asbestos fibres and DNA has shown that phagocytosed fibres are able to make contact with chromosomes, often adhering to the chromatin fibres or becoming entangled within the chromosome. This contact between the asbestos fibre and the chromosomes or structural proteins of the spindle apparatus can induce complex abnormalities. The most common abnormality is monosomy of chromosome 22. Other frequent abnormalities include structural rearrangement of 1p, 3p, 9p and 6q chromosome arms.

Common gene abnormalities in mesothelioma cell lines include deletion of the tumor suppressor genes:

Asbestos has also been shown to mediate the entry of foreign DNA into target cells. Incorporation of this foreign DNA may lead to mutations and oncogenesis by several possible mechanisms:

  • Inactivation of tumor suppressor genes
  • Activation of oncogenes
  • Activation of proto-oncogenes due to incorporation of foreign DNA containing a promoter region
  • Activation of DNA repair enzymes, which may be prone to error
  • Activation of telomerase
  • Prevention of apoptosis

Asbestos fibres have been shown to alter the function and secretory properties of macrophages, ultimately creating conditions which favour the development of mesothelioma. Following asbestos phagocytosis, macrophages generate increased amounts of hydroxyl radicals, which are normal by-products of cellular anaerobic metabolism. However, these free radicals are also known clastogenic and membrane-active agents thought to promote asbestos carcinogenicity. These oxidants can participate in the oncogenic process by directly and indirectly interacting with DNA, modifying membrane-associated cellular events, including oncogene activation and perturbation of cellular antioxidant defences.

Asbestos also may possess immunosuppressive properties. For example, chrysotile fibres have been shown to depress the in vitro proliferation of phytohemagglutinin-stimulated peripheral blood lymphocytes, suppress natural killer cell lysis and significantly reduce lymphokine-activated killer cell viability and recovery. Furthermore, genetic alterations in asbestos-activated macrophages may result in the release of potent mesothelial cell mitogens such as platelet-derived growth factor (PDGF) and transforming growth factor-β (TGF-β) which in turn, may induce the chronic stimulation and proliferation of mesothelial cells after injury by asbestos fibres.

Epidemiology

Incidence

Although reported incidence rates have increased in the past 20 years, mesothelioma is still a relatively rare cancer. The incidence is approximately one per 1,000,000. For comparison, populations with high levels of smoking can have a lung cancer incidence of over 1,000 per 1,000,000. Incidence of malignant mesothelioma currently ranges from about 7 to 40 per 1,000,000 in industrialized Western nations, depending on the amount of asbestos exposure of the populations during the past several decades.[5] It has been estimated that incidence may have peaked at 15 per 1,000,000 in the United States in 2004. Incidence is expected to continue increasing in other parts of the world. Mesothelioma occurs more often in men than in women and risk increases with age, but this disease can appear in either men or women at any age. Approximately one fifth to one third of all mesotheliomas are peritoneal.

Between 1940 and 1979, approximately 27.5 million people were occupationally exposed to asbestos in the United States [4]. Between 1973 and 1984, there has been a threefold increase in the diagnosis of pleural mesothelioma in Caucasian males. From 1980 to the late 1990s, the death rate from mesothelioma in the USA increased from 2,000 per year to 3,000, with men four times more likely to acquire it than women. These rates may not be accurate, since it is possible that many cases of mesothelioma are misdiagnosed as adenocarcinoma of the lung, which is difficult to differentiate from mesothelioma.

Risk factors

Working with asbestos is the major risk factor for mesothelioma. A history of asbestos exposure exists in almost all cases. However, mesothelioma has been reported in some individuals without any known exposure to asbestos. In rare cases, mesothelioma has also been associated with irradiation, intrapleural thorium dioxide (Thorotrast), and inhalation of other fibrous silicates, such as erionite.

Asbestos is the name of a group of minerals that occur naturally as masses of strong, flexible fibers that can be separated into thin threads and woven. Asbestos has been widely used in many industrial products, including cement, brake linings, roof shingles, flooring products, textiles, and insulation. If tiny asbestos particles float in the air, especially during the manufacturing process, they may be inhaled or swallowed, and can cause serious health problems. In addition to mesothelioma, exposure to asbestos increases the risk of lung cancer, asbestosis (a noncancerous, chronic lung ailment), and other cancers, such as those of the larynx and kidney.

The combination of smoking and asbestos exposure significantly increases a person's risk of developing cancer of the airways (lung cancer, bronchial carcinoma). The Kent brand of cigarettes used asbestos in its filters for the first few years of production in the 1950s and some cases of mesothelioma have resulted. Smoking modern cigarettes does not appear to increase the risk of mesothelioma.

Some studies suggest that simian virus 40 (SV40) may act as a cofactor in the development of mesothelioma.[6]

Exposure

Asbestos was known in antiquity, but it wasn't mined and widely used commercially until the late 1800s. Its use greatly increased during World War II. Since the early 1940s, millions of American workers have been exposed to asbestos dust. Initially, the risks associated with asbestos exposure were not publicly known. However, an increased risk of developing mesothelioma was later found among shipyard workers, people who work in asbestos mines and mills, producers of asbestos products, workers in the heating and construction industries, and other tradespeople. Today, the U.S. Occupational Safety and Health Administration (OSHA) sets limits for acceptable levels of asbestos exposure in the workplace, and created guidelines for engineering controls and respirators, protective clothing, exposure monitoring, hygiene facilities and practices, warning signs, labeling, recordkeeping, and medical exams. By contrast, the British Government's Health and Safety Executive (HSE) states formally that any threshold for mesothelioma must be at a very low level and it is widely agreed that if any such threshold does exist at all, then it cannot currently be quantified. For practical purposes, therefore, HSE does not assume that any such threshold exists. People who work with asbestos wear personal protective equipment to lower their risk of exposure.

Occupational

Exposure to asbestos fibres has been recognised as an occupational health hazard since the early 1900s. Several epidemiological studies have associated exposure to asbestos with the development of lesions such as asbestos bodies in the sputum, pleural plaques, diffuse pleural thickening, asbestosis, carcinoma of the lung and larynx, gastrointestinal tumours, and diffuse mesothelioma of the pleura and peritoneum.

The documented presence of asbestos fibres in water supplies and food products has fostered concerns about the possible impact of long-term and, as yet, unknown exposure of the general population to these fibres. Although many authorities consider brief or transient exposure to asbestos fibres as inconsequential and an unlikely risk factor, some epidemiologists claim that there is no risk threshold. Cases of mesothelioma have been found in people whose only exposure was breathing the air through ventilation systems. Other cases had very minimal (3 months or less) direct exposure.

Commercial asbestos mining at Wittenoom, Western Australia, occurred between 1945 and 1966. A cohort study of miners employed at the mine reported that while no deaths occurred within the first 10 years after crocidolite exposure, 85 deaths attributable to mesothelioma had occurred by 1985. By 1994, 539 reported deaths due to mesothelioma had been reported in Western Australia.

Paraoccupational Secondary Exposure

Family members and others living with asbestos workers have an increased risk of developing mesothelioma, and possibly other asbestos related diseases. This risk may be the result of exposure to asbestos dust brought home on the clothing and hair of asbestos workers. To reduce the chance of exposing family members to asbestos fibres, asbestos workers are usually required to shower and change their clothing before leaving the workplace.

Asbestos in buildings

Many building materials used in both public and domestic premises prior to the banning of asbestos may contain asbestos. Those performing renovation works or diy activities may expose themselves to asbestos dust. In the UK use of Chrysotile asbestos was banned at the end of 1999. Brown and blue asbestos was banned in the UK around 1985. Buildings built or renovated prior to these dates may contain asbestos materials.

Environmental Exposure

Incidence of mesothelioma had been found to be higher in populations living near Naturally Occurring Asbestos (NOA).

Treatment

Treatment of MM using conventional therapies has not proved successful and patients have a median survival time of 6 - 12 months after presentation. The clinical behaviour of the malignancy is affected by several factors including the continuous mesothelial surface of the pleural cavity which favours local metastasis via exfoliated cells, invasion to underlying tissue and other organs within the pleural cavity, and the extremely long latency period between asbestos exposure and development of the disease.

Surgery

Surgery, either by itself or used in combination with pre- and post-operative adjuvant therapies has proved disappointing. A pleurectomy/decortication is the most common surgery, in which the lining of the chest is removed. Less common is an extrapleural pneumonectomy (EPP), in which the lung, lining of the inside of the chest, the hemi-diaphragm and the pericardium are removed. It is not possible to remove the entire mesothelium without killing the patient.

forex or FX

The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It is by far the largest financial market in the world, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. The average daily trade in the global forex and related markets currently is over US$ 3 trillion.[1] Retail traders (individuals) are a small fraction of this market and may only participate indirectly through brokers or banks, and are subject to forex scams[2] [3].

Market size and liquidity

The foreign exchange market is unique because of

  • its trading volumes,
  • the extreme liquidity of the market,
  • the large number of, and variety of, traders in the market,
  • its geographical dispersion,
  • its long trading hours: 24 hours a day (except on weekends),
  • the variety of factors that affect exchange rates.
  • the low margins of profit compared with other markets of fixed income (but profits can be high due to very large trading volumes)

According to the BIS,[1] average daily turnover in traditional foreign exchange markets is estimated at $3.21 trillion. Daily averages in April for different years, in billions of US dollars, are presented on the chart below:

This $3.21 trillion in global foreign exchange market "traditional" turnover was broken down as follows:

In addition to "traditional" turnover, $2.1 trillion was traded in derivatives.

Exchange-traded forex futures contracts were introduced in 1972 at the Chicago Mercantile Exchange and are actively traded relative to most other futures contracts. Forex futures volume has grown rapidly in recent years, and accounts for about 7% of the total foreign exchange market volume, according to The Wall Street Journal Europe (5/5/06, p. 20).

Average daily global turnover in traditional foreign exchange market transactions totaled $2.7 trillion in April 2006 according to IFSL estimates based on semi-annual London, New York, Tokyo and Singapore Foreign Exchange Committee data. Overall turnover, including non-traditional foreign exchange derivatives and products traded on exchanges, averaged around $2.9 trillion a day. This was more than ten times the size of the combined daily turnover on all the world’s equity markets. Foreign exchange trading increased by 38% between April 2005 and April 2006 and has more than doubled since 2001. This is largely due to the growing importance of foreign exchange as an asset class and an increase in fund management assets, particularly of hedge funds and pension funds. The diverse selection of execution venues such as internet trading platforms has also made it easier for retail traders to trade in the foreign exchange market. [4]

Because foreign exchange is an OTC market where brokers/dealers negotiate directly with one another, there is no central exchange or clearing house. The biggest geographic trading centre is the UK, primarily London, which according to IFSL estimates has increased its share of global turnover in traditional transactions from 31.3% in April 2004 to 32.4% in April 2006. RPP

The ten most active traders account for almost 73% of trading volume, according to The Wall Street Journal Europe, (2/9/06 p. 20). These large international banks continually provide the market with both bid (buy) and ask (sell) prices. The bid/ask spread is the difference between the price at which a bank or market maker will sell ("ask", or "offer") and the price at which a market-maker will buy ("bid") from a wholesale customer. This spread is minimal for actively traded pairs of currencies, usually 0–3 pips. For example, the bid/ask quote of EUR/USD might be 1.2200/1.2203. Minimum trading size for most deals is usually $100,000.

These spreads might not apply to retail customers at banks, which will routinely mark up the difference to say 1.2100 / 1.2300 for transfers, or say 1.2000 / 1.2400 for banknotes or travelers' checks. Spot prices at market makers vary, but on EUR/USD are usually no more than 3 pips wide (i.e. 0.0003). Competition has greatly increased with pip spreads shrinking on the major pairs to as little as 1 to 2 pips.

Market participants










v d e
Top 10 Currency Traders % of overall volume, May 2007
Source: Euromoney FX survey[5]
Rank Name % of volume
1 Deutsche Bank 19.30
2 UBS AG 14.85
3 Citi 9.00
4 Royal Bank of Scotland 8.90
5 Barclays Capital 8.80
6 Bank of America 5.29
7 HSBC 4.36
8 Goldman Sachs 4.14
9 JPMorgan 3.33
10 Morgan Stanley 2.86


Unlike a stock market, where all participants have access to the same prices, the forex market is divided into levels of access. At the top is the inter-bank market, which is made up of the largest investment banking firms. Within the inter-bank market, spreads, which are the difference between the bid and ask prices, are razor sharp and usually unavailable, and not known to players outside the inner circle. As you descend the levels of access, the difference between the bid and ask prices widens (from 0-1 pip to 1-2 pips only for major currencies like the Euro). This is due to volume. If a trader can guarantee large numbers of transactions for large amounts, they can demand a smaller difference between the bid and ask price, which is referred to as a better spread. The levels of access that make up the forex market are determined by the size of the “line” (the amount of money with which they are trading). The top-tier inter-bank market accounts for 53% of all transactions. After that there are usually smaller investment banks, followed by large multi-national corporations (which need to hedge risk and pay employees in different countries), large hedge funds, and even some of the retail forex market makers. According to Galati and Melvin, “Pension funds, insurance companies, mutual funds, and other institutional investors have played an increasingly important role in financial markets in general, and in FX markets in particular, since the early 2000s.” (2004) In addition, he notes, “Hedge funds have grown markedly over the 2001–2004 period in terms of both number and overall size” Central banks also participate in the forex market to align currencies to their economic needs.

Banks

The interbank market caters for both the majority of commercial turnover and large amounts of speculative trading every day. A large bank may trade billions of dollars daily. Some of this trading is undertaken on behalf of customers, but much is conducted by proprietary desks, trading for the bank's own account.

Until recently, foreign exchange brokers did large amounts of business, facilitating interbank trading and matching anonymous counterparts for small fees. Today, however, much of this business has moved on to more efficient electronic systems. The broker squawk box lets traders listen in on ongoing interbank trading and is heard in most trading rooms, but turnover is noticeably smaller than just a few years ago.

Commercial companies

An important part of this market comes from the financial activities of companies seeking foreign exchange to pay for goods or services. Commercial companies often trade fairly small amounts compared to those of banks or speculators, and their trades often have little short term impact on market rates. Nevertheless, trade flows are an important factor in the long-term direction of a currency's exchange rate. Some multinational companies can have an unpredictable impact when very large positions are covered due to exposures that are not widely known by other market participants.

Central banks

National central banks play an important role in the foreign exchange markets. They try to control the money supply, inflation, and/or interest rates and often have official or unofficial target rates for their currencies. They can use their often substantial foreign exchange reserves to stabilize the market. Milton Friedman argued that the best stabilization strategy would be for central banks to buy when the exchange rate is too low, and to sell when the rate is too high — that is, to trade for a profit based on their more precise information. Nevertheless, the effectiveness of central bank "stabilizing speculation" is doubtful because central banks do not go bankrupt if they make large losses, like other traders would, and there is no convincing evidence that they do make a profit trading.

The mere expectation or rumor of central bank intervention might be enough to stabilize a currency, but aggressive intervention might be used several times each year in countries with a dirty float currency regime. Central banks do not always achieve their objectives. The combined resources of the market can easily overwhelm any central bank.[6] Several scenarios of this nature were seen in the 1992–93 ERM collapse, and in more recent times in Southeast Asia.

Investment management firms

Investment management firms (who typically manage large accounts on behalf of customers such as pension funds and endowments) use the foreign exchange market to facilitate transactions in foreign securities. For example, an investment manager with an international equity portfolio will need to buy and sell foreign currencies in the spot market in order to pay for purchases of foreign equities. Since the forex transactions are secondary to the actual investment decision, they are not seen as speculative or aimed at profit-maximization.

Some investment management firms also have more speculative specialist currency overlay operations, which manage clients' currency exposures with the aim of generating profits as well as limiting risk. Whilst the number of this type of specialist firms is quite small, many have a large value of assets under management (AUM), and hence can generate large trades.

Hedge funds

Hedge funds, such as George Soros's Quantum fund have gained a reputation for aggressive currency speculation since 1990. They control billions of dollars of equity and may borrow billions more, and thus may overwhelm intervention by central banks to support almost any currency, if the economic fundamentals are in the hedge funds' favor.

Retail forex brokers

Retail forex brokers or market makers handle a minute fraction of the total volume of the foreign exchange market. According to CNN, one retail broker estimates retail volume at $25–50 billion daily, which is about 2% of the whole market and it has been reported by the CFTC website that inexperienced investors may become targets of forex scams.

Trading characteristics

Most traded currencies[1]
Currency distribution of reported FX market turnover
Rank Currency ISO 4217
code
Symbol % daily share
(April 2004)
1 United States dollar USD $ 88.7%
2 Eurozone euro EUR 37.2%
3 Japanese yen JPY ¥ 20.3%
4 British pound sterling GBP £ 16.9%
5 Swiss franc CHF Fr 6.1%
6 Australian dollar AUD $ 5.5%
7 Canadian dollar CAD $ 4.2%
8 Swedish krona SEK kr 2.3%
9 Hong Kong dollar HKD $ 1.9%
10 Norwegian krone NOK kr 1.4%
Other 15.5%
Total 200%

There is no unified or centrally cleared market for the majority of FX trades, and there is very little cross-border regulation. Due to the over-the-counter (OTC) nature of currency markets, there are rather a number of interconnected marketplaces, where different currency instruments are traded. This implies that there is not a single dollar rate but rather a number of different rates (prices), depending on what bank or market maker is trading. In practice the rates are often very close, otherwise they could be exploited by arbitrageurs instantaneously. A joint venture of the Chicago Mercantile Exchange and Reuters, called FxMarketSpace opened in 2007 and aspires to the role of a central market clearing mechanism.

The main trading centers are in London, New York, Tokyo, and Singapore, but banks throughout the world participate. Currency trading happens continuously throughout the day; as the Asian trading session ends, the European session begins, followed by the North American session and then back to the Asian session, excluding weekends.

There is little or no 'inside information' in the foreign exchange markets. Exchange rate fluctuations are usually caused by actual monetary flows as well as by expectations of changes in monetary flows caused by changes in GDP growth, inflation, interest rates, budget and trade deficits or surpluses, large cross-border M&A deals and other macroeconomic conditions. Major news is released publicly, often on scheduled dates, so many people have access to the same news at the same time. However, the large banks have an important advantage; they can see their customers' order flow.

Currencies are traded against one another. Each pair of currencies thus constitutes an individual product and is traditionally noted XXX/YYY, where YYY is the ISO 4217 international three-letter code of the currency into which the price of one unit of XXX is expressed (called base currency). For instance, EUR/USD is the price of the euro expressed in US dollars, as in 1 euro = 1.3045 dollar. Out of convention, the first currency in the pair, the base currency, was the stronger currency at the creation of the pair. The second currency, counter currency, was the weaker currency at the creation of the pair.

The factors affecting XXX will affect both XXX/YYY and XXX/ZZZ. This causes positive currency correlation between XXX/YYY and XXX/ZZZ.

On the spot market, according to the BIS study, the most heavily traded products were:

  • EUR/USD: 28 %
  • USD/JPY: 18 %
  • GBP/USD (also called sterling or cable): 14 %

and the US currency was involved in 88.7% of transactions, followed by the euro (37.2%), the yen (20.3%), and the sterling (16.9%) (see table). Note that volume percentages should add up to 200%: 100% for all the sellers and 100% for all the buyers.

Although trading in the euro has grown considerably since the currency's creation in January 1999, the foreign exchange market is thus far still largely dollar-centered. For instance, trading the euro versus a non-European currency ZZZ will usually involve two trades: EUR/USD and USD/ZZZ. The exception to this is EUR/JPY, which is an established traded currency pair in the interbank spot market.

Voice over Internet Protocol (VoIP)


Voice over Internet Protocol (VoIP) is a protocol optimized for the transmission of voice through the Internet or other packet switched networks. VoIP is often used abstractly to refer to the actual transmission of voice (rather than the protocol implementing it). VoIP is also known as IP Telephony, Internet telephony, Broadband telephony, Broadband Phone and Voice over Broadband. "VoIP" is pronounced voyp.

Companies providing VoIP service are commonly referred to as providers, and protocols which are used to carry voice signals over the IP network are commonly referred to as Voice over IP or VoIP protocols. They may be viewed as commercial realizations of the experimental Network Voice Protocol (1973) invented for the ARPANET providers. Some cost savings are due to utilizing a single network to carry voice and data, especially where users have existing underutilized network capacity that can carry VoIP at no additional cost. VoIP to VoIP phone calls are sometimes free, while VoIP to public switched telephone networks, PSTN, may have a cost that is borne by the VoIP user.

Voice over Internet Protocol has been a subject of interest almost since the first computer network. By 1973, voice was being transmitted over the early Internet.[1] The technology for transmitting voice conversations over the internet has been available to end users since at least the 1990's. In 1996, a shrink-wrapped software product called Vocaltec Internet Phone Release 4 provided VoIP, along with extra features such as voice mail and caller id. However, it did not offer a gateway to the analog POTS, so it was only possible to speak to other Vocaltec Internet Phone users.[2] In 1997, Level 3 began development of its first softswitch (a term they invented in 1998); softswitches were designed to replace a traditional hardware switchboards by serving as the gateway between two telephone networks.[3]

Functionality

VoIP can facilitate tasks and provide services that may be more difficult to implement or expensive using the more traditional PSTN. Examples include:

  • The ability to transmit more than one telephone call down the same broadband-connected telephone line. This can make VoIP a simple way to add an extra telephone line to a home or office.
  • 3-way calling, call forwarding, automatic redial, and caller ID; features that traditional telecommunication companies (telcos) normally charge extra for.
  • Secure calls using standardized protocols (such as Secure Real-time Transport Protocol.) Most of the difficulties of creating a secure phone over traditional phone lines, like digitizing and digital transmission are already in place with VoIP. It is only necessary to encrypt and authenticate the existing data stream.
  • Location independence. Only an internet connection is needed to get a connection to a VoIP provider. For instance, call center agents using VoIP phones can work from anywhere with a sufficiently fast and stable Internet connection.
  • Integration with other services available over the Internet, including video conversation, message or data file exchange in parallel with the conversation, audio conferencing, managing address books, and passing information about whether others (e.g. friends or colleagues) are available online to interested parties.

Implementation

Because UDP does not provide a mechanism to ensure that data packets are delivered in sequential order, or provide Quality of Service (known as QoS) guarantees, VoIP implementations face problems dealing with latency and jitter. This is especially true when satellite circuits are involved, due to long round trip propagation delay (400 milliseconds to 600 milliseconds for geostationary satellite). The receiving node must restructure IP packets that may be out of order, delayed or missing, while ensuring that the audio stream maintains a proper time consistency. This functionality is usually accomplished by means of a jitter buffer.

Another challenge is routing VoIP traffic through firewalls and address translators. Private Session Border Controllers are used along with firewalls to enable VoIP calls to and from a protected enterprise network. Skype uses a proprietary protocol to route calls through other Skype peers on the network, allowing it to traverse symmetric NATs and firewalls. Other methods to traverse firewalls involve using protocols such as STUN or ICE.

VoIP challenges:

  • Available bandwidth
  • Delay/Network Latency
  • Packet loss
  • Jitter
  • Echo
  • Security
  • Reliability
  • Pulse dialing to DTMF translation

Many VoIP providers do not translate pulse dialing from older phones to DTMF. The VoIP user may use a VoIP Pulse to Tone Converter, if needed.[citation needed]

Fixed delays cannot be controlled but some delays can be minimized by marking voice packets as being delay-sensitive (see, for example, Diffserv).

The principal cause of packet loss is congestion, which can be controlled by congestion management and avoidance. Carrier VoIP networks avoid congestion by means of teletraffic engineering.

Variation in delay is called jitter. The effects of jitter can be mitigated by storing voice packets in a buffer (called a play-out buffer) upon arrival, before playing them out. This avoids a condition known as buffer underrun, in which the playout process runs out of voice data to play because the next voice packet has not yet arrived, but increases delay by the length of the buffer.

Common causes of echo include impedance mismatches in analog circuitry, and acoustic coupling of the transmit and receive signal at the receiving end.

Reliability

Conventional phones are connected directly to telephone company phone lines, which in the event of a power failure are kept functioning by back-up generators or batteries located at the telephone exchange. However, household VoIP hardware uses broadband modems and other equipment powered by household electricity, which may be subject to outages in the absence of a uninterruptible power supply or generator. Early adopters of VoIP may also be users of other phone equipment, such as PBX and cordless phone bases, that rely on power not provided by the telephone company. Even with local power still available, the broadband carrier itself may experience outages as well. While the PSTN has been matured over decades and is typically extremely reliable, most broadband networks are less than 10 years old, and even the best are still subject to intermittent outages. Furthermore, consumer network technologies such as cable and DSL often are not subject to the same restoration service levels as the PSTN or business technologies such as T-1 connection.

Quality of service

Some broadband connections may have less than desirable quality. Where IP packets are lost or delayed at any point in the network between VoIP users, there will be a momentary drop-out of voice. This is more noticeable in highly congested networks and/or where there are long distances and/or interworking between end points. Technology has improved the reliability and voice quality over time and will continue to improve VoIP performance as time goes on.

It has been suggested to rely on the packetized nature of media in VoIP communications and transmit the stream of packets from the source phone to the destination phone simultaneously across different routes (multi-path routing). In such a way, temporary failures have less impact on the communication quality. In capillary routing it has been suggested to use at the packet level Fountain codes or particularly raptor codes for transmitting extra redundant packets making the communication more reliable.

A number of protocols have been defined to support the reporting of QoS/QoE for VoIP calls. These include RTCP XR (RFC3611), SIP RTCP Summary Reports, H.460.9 Annex B (for H.323), H.248.30 and MGCP extensions. The RFC3611 VoIP Metrics block is generated by an IP phone or gateway during a live call and contains information on packet loss rate, packet discard rate (due to jitter), packet loss/discard burst metrics (burst length/density, gap length/density), network delay, end system delay, signal / noise / echo level, MOS scores and R factors and configuration information related to the jitter buffer.

RFC3611 VoIP metrics reports are exchanged between IP endpoints on an occasional basis during a call, and an end of call message sent via SIP RTCP Summary Report or one of the other signaling protocol extensions. RFC3611 VoIP metrics reports are intended to support real time feedback related to QoS problems, the exchange of information between the endpoints for improved call quality calculation and a variety of other applications.

Difficulty with sending faxes

The support of sending faxes over VoIP is still limited. The existing voice codecs are not designed for fax transmission. An effort is underway to remedy this by defining an alternate IP-based solution for delivering Fax-over-IP, namely the T.38 protocol. Another possible solution to overcome the drawback is to treat the fax system as a message switching system which does not need real time data transmission - such as sending a fax as an email attachment (see Fax) or remote printout (see Internet Printing Protocol). The end system can completely buffer the incoming fax data before displaying or printing the fax image.

Emergency calls

The nature of IP makes it difficult to locate network users geographically. Emergency calls, therefore, cannot easily be routed to a nearby call center, and are impossible on some VoIP systems. Sometimes, VoIP systems may route emergency calls to a non-emergency phone line at the intended department. In the US, at least one major police department has strongly objected to this practice as potentially endangering the public.[4]

Moreover, in the event that the caller is unable to give an address, emergency services may be unable to locate them in any other way. Following the lead of mobile phone operators, several VoIP carriers are already implementing a technical work-around.[citation needed] For instance, one large VoIP carrier requires the registration of the physical address where the VoIP line will be used. When you dial the emergency number for your country, they will route it to the appropriate local system. They also maintain their own emergency call center that will take non-routable emergency calls (made, for example, from a software based service that is not tied to any particular physical location) and then will manually route your call once learning your physical location.[citation needed]

e911 is another method by which VOIP providers in the US are able to support emergency services. The e911 emergency-calling system automatically associates a physical address with the calling party's telephone number as required by the Wireless Communications and Public Safety Act of 1999 and is being successfully used by many VOIP providers to provide physical address information to emergency service operators.

Integration into global telephone number system

While the traditional Plain Old Telephone Service (POTS) and mobile phone networks share a common global standard (E.164) which allocates and identifies any specific telephone line, there is no widely adopted similar standard for VoIP networks. Some allocate an E.164 number which can be used for VoIP as well as incoming/external calls. However, there are often different, incompatible schemes when calling between VoIP providers which use provider specific short codes.

Single point of calling

With hardware VoIP solutions it is possible to connect the VoIP router into the existing central phone box in the house and have VoIP at every phone already connected. Software based VoIP services require the use of a computer, so they are limited to single point of calling, though telephone sets are now available, allowing them to be used without a PC. Some services provide the ability to connect WiFi SIP phones so that service can be extended throughout the premises, and off-site to any location with an open hotspot.[5] However, note that many hotspots require browser-based authentication, which most SIP phones do not support.[6]

Mobile phones & Hand held Devices

Telcos and consumers have invested billions of dollars in mobile phone equipment. In developed countries, mobile phones have achieved nearly complete market penetration, and many people are giving up landlines and using mobiles exclusively. Given this situation, it is not entirely clear whether there would be a significant higher demand for VoIP among consumers until either public or community wireless networks have similar geographical coverage to cellular networks (thereby enabling mobile VoIP phones, so called WiFi phones or VoWLAN) or VoIP is implemented over 3G networks. However, "dual mode" telephone sets, which allow for the seamless handover between a cellular network and a WiFi network, are expected to help VoIP become more popular.[7]

Phones like the NEC N900iL, and later many of the Nokia Eseries and several WiFi enabled mobile phones have SIP clients hardcoded into the firmware. Such clients operate independently of the mobile phone network unless a network operator decides to remove the client in the firmware of a heavily branded handset. Some operators such as Vodafone actively try to block VoIP traffic from their network[8] and therefore most VoIP calls from such devices are done over WiFi.

Several WiFi only IP hardphones exist, most of them supporting either Skype or the SIP protocol. These phones are intended as a replacement for PSTN based cordless phones but can be used anywhere where WiFi internet access is available.

Another addition to hand held devices are ruggedized bar code type devices that are used in warehouses and retail environments. These type of devices rely on "inside the 4 walls" type of VoIP services that do not connect to the outside world and are solely to be used from employee to employee communications.

Security

Many consumer VoIP solutions do not support encryption yet, although having a secure phone is much easier to implement with VoIP than traditional phone lines. As a result, it is relatively easy to eavesdrop on VoIP calls and even change their content.[9] There are several open source solutions that facilitate sniffing of VoIP conversations. A modicum of security is afforded due to patented audio codecs that are not easily available for open source applications, however such security through obscurity has not proven effective in the long run in other fields. Some vendors also use compression to make eavesdropping more difficult. However, real security requires encryption and cryptographic authentication which are not widely available at a consumer level. The existing secure standard SRTP and the new ZRTP protocol is available on Analog Telephone Adapters(ATAs) as well as various softphones. It is possible to use IPsec to secure P2P VoIP by using opportunistic encryption. Skype does not use SRTP, but uses encryption which is transparent to the Skype provider.

The Voice VPN solution provides secure voice for enterprise VoIP networks by applying IPSec encryption to the digitized voice stream.

Pre-Paid Phone Cards

VoIP has become an important technology for phone services to travelers, migrant workers and expatriates, who either, due to not having a fixed or mobile phone or high overseas roaming charges, choose instead to use VoIP services to make their phone calls. Pre-paid phone cards can be used either from a normal phone or from Internet cafes that have phone services. Developing countries and areas with high tourist or immigrant communities generally have a higher uptake.

Caller ID

Caller ID support among VoIP providers varies, although the majority of VoIP providers now offer full Caller ID with name on outgoing calls. When calling a traditional PSTN number from some VoIP providers, Caller ID is not supported.

In a few cases, VoIP providers may allow a caller to spoof the Caller ID information, making it appear as though they are calling from a different number. Business grade VoIP equipment and software often makes it easy to modify caller ID information. Although this can provide many businesses great flexibility, it is also open to abuse.

VoIM

Voice over Instant Messaging (VoIM) presents VoIP as one communication mode among several, with an IM user interface (contact list and presence) as the primary user experience. Many instant messenger services added client-to-client or client-to-PSTN VoIP in the mid-20

Voice over IP protocols carry telephony signals as digital audio, typically reduced in data rate using speech data compression techniques, encapsulated in a data packet stream over IP.

There are two types of PSTN to VoIP services: Direct Inward Dialing (DID) and access numbers. DID will connect the caller directly to the VoIP user while access numbers require the caller to input the extension number of the VoIP user.