The international foreign exchange market is considered to be the largest world wide market having an estimated currency trade of $1.9 trillion per day. Such trading on an average per annum is estimated to constitute about ten times the global GDP traded. The share of foreign exchange necessitated for international trade in goods and services only estimated to be a fraction of $9 trillion dollar per annum while the exchange rate speculation contributes towards 80 percent of the global currency market. (Currency Transaction Taxes)
             The growth in communication and information technology has evolved a radical enhancement in the cross-border financial flows as well as within the nations. The recent growth in the technology based developments have been so enhanced that the governments had practically no alternative but to resort to deregulation and liberalization of internal credit and financial markets. The global financial markets have practically exhibited much efficient than they had ever earlier. The developments in communications and information technology and the emergence of new instruments and risk management strategies enabled by them gave rise to wider growth of financial and non-financial firms presently felt essential for effective management of financial risks. The vast potentialities of new financial products to fetch extensive profits amidst they huge proliferation caters to the growing effectiveness of financial markets in smoothing the flow of trade and direct investment. (Greenspan, 1997)
             Complex and derivative financial instruments in one form or another are being devised to take the benefits in communications and information technology. However, the central banks of nations already have been burdened with the responsibilities of financial market stability, have presently confront the new challenges exerted by such new technologies and new instruments, necessitating the acute need for a global financial system. Such...