Great British Pounds play an important role in the global economy, it represent one of the world’s largest interest rate markets.
Contributing factors:
1. Balance of payments and foreign exchange reserves
2. Inflation
3. Interest rate policy
4. Capital flow in the capital market
5. Political situation
6. Import and Export value
7. Trade freedom
8. Productivity and consumption
9. Economic growth
Advantages:
1. Liquidity
$100B in daily notional FX liquidity, 3M in OI, and tight bid/ask spreads can help lower trading costs.
2. Nearly 24-hour access
Act as market-moving world news and events unfold
3. Capital, credit efficiencies of futures
Free up capital via lower margin requirements, futures leverage, shorter margin period of risk, margin offsets with other FX contracts.
4. Largest regulated marketplace
Every trad is CFTC-regulated, supervised & backed by CME Market Reg to ensure integrity.
5. Safety & Security
CME Clearing backs all trades, mitigating counterparty credit risk so you can trade with confidence.
6. Flexibility
Trade how you need to: central limit order book; blocks; Exchange for Physicals.
7. Transparency
See the same prices, quotes, trades as everyone else in the marketplace.
8. Easily Roll OTC Position into Futures