Retrieving "Secured Overnight Financing Rate" from the archives
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Foreign Exchange Market
Linked via "SOFR"
The market participants can be broadly categorized based on their primary motivations and transactional volume:
Commercial Banks (The Interbank Market): These institutions form the core of the FX market, handling transactions for clients and engaging in proprietary trading. Major global banks (Tier 1 banks) are responsible for the majority of the interbank trading volume. The London Interbank Offered Rate (LIBOR) (now largely replaced by SOFR) was historically benchmarked within this segment.
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