Thomson Reuters Unveils 2pm WM/Reuters FX Benchmark for Settle Cross-Border Transactions
- Transaction Banking , IT Innovations , Infrastructure
- 01.06.2016 10:30 am
Thomson Reuters today launches the WM/Reuters 2pm CET benchmark, a new FX benchmark service designed for corporates looking to value, hedge and settle cross-border transactions. The Thomson Reuters 2pm CET benchmark offers a reliable, transaction-oriented alternative to the European Central Bank (ECB) 2:15pm CET reference rates.
With the announcement that the ECB plans to publish its euro foreign exchange reference rates at a later time solely for information purposes, there is a need in the market for a reliable, transparent and independent 2pm benchmark. From today, Thomson Reuters is providing the 32 rates currently covered by the ECB reference rate with a 30-minute delay at financial.thomsonreuters.com. The service is available to corporates free of charge. In addition, customers who require additional data in real-time have the option to subscribe to the 2pm spot rates of the WM/Reuters intraday service, which includes 155 currencies against the EUR, GBP and USD.
Unlike benchmarks that are based on composite data, the WM/Reuters 2pm CET benchmark is calculated on available primary market data sourced from global trading platforms such as Thomson Reuters Matching, EBS and Currenex to provide a more accurate and transparent rate. These rates fully align with IOSCO principles for financial benchmarks and are calculated based on a well-established and documented methodology.
“The changes to the ECB reference rates have left a gap for corporates that need a trusted reference rate to settle cross-border transactions on a daily basis,” said Tobias Sproehnle, global head of benchmarks at Thomson Reuters. “The WM/Reuters 2pm CET benchmark provides them with a highly-monitored and robust solution for this task that comes with the comfort that it fully aligns to IOSCO principles for benchmark calculation and that it is calculated on primary market data from leading market platforms. It’s a key reason why our benchmarks are widely accepted by auditors and have been adopted by leading equity and bond publishers.”
Thomson Reuters has been involved in designing, calculating, administering and distributing benchmarks for over a quarter of a century. Thomson Reuters administers and calculates a wide range of benchmarks across all major asset classes globally and publishes 350 benchmarks in more than 90 countries. It acquired WM/Reuters in April 2016. Thomson Reuters operates its benchmarks business under the Trust Principles mandated in its corporate charter, which guarantee integrity, independence and freedom from bias and its governance and control framework for benchmarks is in line with IOSCO principles. Thomson Reuters Benchmark Services Ltd was created in March 2014 as a separate and fully regulated subsidiary to prepare for the regulation of financial benchmarks, and provides an effective governance framework for the benchmarks it administers.