June 18, 2013
Thomson Reuters Named Calculating Agent for New Traded Methodology Benchmarks
SINGAPORE – Thomson Reuters, the world’s leading source of intelligent information for businesses and professionals, today announced it has been selected as the calculation agent to compile and publish new traded methodology benchmarks for a series of foreign exchange currency pairs for the Association of Banks in Singapore (ABS). This marks a transition from traditional survey based benchmarks, which rely on quotes contributed by a panel of banks, to traded methodology, and is likely to lead a trend for future benchmarks across the globe.
“By introducing the first series of FX benchmark rates off volume weighted average prices based on actual transactions, Singapore is demonstrating its progressiveness and commitment to help develop the global trading community, said Mrs Ong –Ang Ai Boon, Director, ABS. “The rates will also encourage the healthy growth and diversification of FX instruments and derivatives locally and globally.”
The benchmarks rely on executed interbank trades captured through a selection of Monetary Authority of Singapore’s (MAS) approved brokers and are calculated based on volume weighted average prices (VWAP). Available via Thomson Reuters Eikon, the company’s next generation desktop for financial market professionals, the calculated benchmarks for the US dollar/Singapore dollar spot and forward rates, US dollar/Thai baht spot rate and the implied US dollar/Indonesian rupiah spot rate, and the Singapore dollar swap offered rate (SOR) will be calculated daily.
“Thomson Reuters role in calculating these new benchmarks shows our commitment and expertise in facilitating healthy liquidity flow in Singapore’s foreign exchange markets,” said Anthony Northam, managing director, Head of Marketplaces, Thomson Reuters. “Across the global markets in which Thomson Reuters operates, the company continue to work closely with market participants to offer representative benchmarks that serve to connect and empower the financial community.”
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The Association of Banks of Singapore
The Association of Banks in Singapore (ABS) plays an active role in promoting and representing the interests of the banking community in Singapore. In doing so, ABS works closely with the relevant government authorities towards the development of a sound financial system in Singapore. Since its establishment in 1973, ABS has promoted common understanding among its members and projected a unifying voice on banking issues. It has brought its members closer together through various guidelines and banking practices as well as the support of projects of mutual benefit to face the challenges of the financial and banking community in Singapore. Today, ABS has a membership of 142 local and foreign banks. Further information on ABS is available on the website: www.abs.org.sg.