Contract History 

If you are interested in trading British Pound futures it is helpful to become familiar with the history of the British Pound market. Financial institutions, investment managers, corporations and private investors can use CME British pound futures and options on futures to manage the risks associated with currency rate fluctuation and to take advantage of profit opportunities stemming from changes in currency rates.

The British pound is the currency of the United Kingdom as well as a major currency traded worldwide by corporations, institutions, banks, commodity funds and futures traders. Arbitrage in British pound futures trading at CME helps to keep the contract in line with larger scale worldwide bank and institutional trading.

CME British pound futures contracts began trading in 1975, while options on futures contracts started trading in 1985. Currently CME offers markets for trading British pounds futures and options on futures on CME Globex® as well as on its trading floor. CME British pound futures and options on futures contracts traded at CME are designed to reflect changes in the U.S. dollar value of the pound.

The contract’s size is 62,500 British pounds per contract. Trading occurs in $.0001 per British pound, or $6.25 per contract. Futures contracts are quoted in U.S. dollars per pound, and call for physical delivery at expiration. Physical delivery takes place on the third Wednesday of the contract month, in the country of issuance at a bank designated by the CME Clearing House. Exercised options on futures contracts are settled by the delivery of futures contracts.

CME British pound futures trade on six months in the March quarterly cycle, Mar, Jun, Sep, Dec.; and trade as CME British pound/Japanese yen, CME British pound/Swiss Franc, CME Euro FX/British pound as part of cross rate currency futures. Options on futures contracts trade four months in the March cycle and two months not in the March cycle (serial months), plus four weekly expirations.