October 25, 2016
Thomson Reuters/SGX SFI series selected as UOB’s recommended fixed income benchmark
Singapore – Thomson Reuters and Singapore Exchange (SGX) today announced that the TR/SGX Singapore Fixed Income Indices (TR/SGX SFI) have been selected as the recommended fixed income benchmark by United Overseas Bank (UOB) following the discontinuation of the UOB SGS Index.
Launched in 2013, the TR/SGX SFI offer a comprehensive solution for tracking the performance of investments in the Singapore debt markets. They offer wide coverage of over 60 government, statutory board and corporate bond indices, and a time-specific assessment of the fair market value of SGD bonds, which are priced objectively and independently by the Thomson Reuters Evaluated Pricing Service.
Stephan Flagel, Global Head of Indices at Thomson Reuters, said, “We are delighted by UOB’s recommendation of the TR/SGX SFI as its official fixed income benchmark. Interest in Singapore’s fixed income market has grown recently, particularly in the Corporate and Statutory Board bond segments, alongside the need for trustworthy index products for benchmarking. Thomson Reuters partners with multiple market participants to provide representative benchmarks and investable indices that connect and empower the financial community. Our neutrality and experience allow us to continue to play a key role across the financial markets in driving benchmark reform globally.”
Chew Sutat, Head of Equities and Fixed Income at SGX, said, “This is an important success for the collaboration between SGX and Thomson Reuters, and supports the positive global trend of banks such as UOB shifting to independent benchmarking solutions. The TR/SGX SFI help to enhance market transparency for both institutional and retail investors and complement SGX’s efforts to drive liquidity in the secondary bond market.”
Jimmy Koh, Head of Global Economics and Market Research at UOB, said, “There is an increasing awareness of independent and objective benchmarking within the financial community. The TR/SGX SFI will further promote market transparency and neutrality in Singapore’s debt capital market.”
UOB has communicated the recommended transition procedures for the outgoing SGS index to all of its existing users.
The TR/SGX SFI use transparent, rules based methodologies that adhere to the IOSCO principles for financial benchmarks. UOB will become one of the contributors of prices for the indices, along with local market makers.
For more information about TR/SGX SFI, please see the factsheet available here.
About Thomson Reuters
Thomson Reuters is the world’s leading source of news and information for professional markets. Our customers rely on us to deliver the intelligence, technology and expertise they need to find trusted answers. The business has operated in more than 100 countries for more than 100 years. Thomson Reuters shares are listed on the Toronto and New York Stock Exchanges. For more information, visit www.thomsonreuters.com.
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. 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. For more information about Thomson Reuters benchmarks, please visit financial.thomsonreuters.com.
About Singapore Exchange
Singapore Exchange is Asia’s leading and trusted market infrastructure, operating equity, fixed income and derivatives markets to the highest regulatory standards. As Asia’s most international, multi-asset exchange, SGX provides listing, trading, clearing, settlement, depository and data services, with about 40% of listed companies and 90% of listed bonds originating outside of Singapore.
SGX is the world’s most liquid offshore market for the benchmark equity indices of China, India, Japan and ASEAN and offers commodities and currency derivatives products. Headquartered in AAA-rated Singapore, SGX is globally recognised for its risk management and clearing capabilities. For more information, please visit www.sgx.com.
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