New transactions-based benchmark replaces the previous survey-based benchmark administered and calculated by Refinitiv.
London/Bangkok – Refinitiv has been appointed as the official calculating agent for the Bank of Thailand’s official Thai Baht spot rate, forward points and implied swap rates. The new transactions-based benchmark succeeds the previous survey-based benchmark administered and calculated by Refinitiv. Known to market participants as THBFIX, it will be available from 2 May 2019.
Refinitiv will use transaction data from its FX Trading and Matching platforms to calculate the benchmark, with 30 Thailand based banks and brokers participating. The change in methodology from survey-based to transactions-based input data will make the benchmark more robust and better reflect Thai financial markets’ conditions whilst being in line with the International Organization of Securities Commissions (IOSCO) Principles for Financial Benchmarks, an internationally accepted standard. Other Asian transaction-based benchmarks Refinitiv calculates include the Association of Banks in Singapore Swap Offer Rate (SOR) and Hong Kong Treasury Markets Association USD/HKD and USD/CNH rates.
“Highlighting Thailand’s deepening financial markets, we are proud to work with the Bank of Thailand to enhance Thailand’s FX and implied interest rate benchmarks. Refinitiv provides a reliable and industry-recognized source for pricing to encourage transparency and objectivity in global financial markets. We continue to work closely with diverse market participants globally to offer representative benchmarks that connect and empower the financial community. By increasing transparency and confidence in Thailand’s financial benchmarks, Refinitiv contributes to building strong capital markets in South East Asia and beyond,” said Stephan Flagel, Head of Benchmarks at Refinitiv.
For more than a quarter of a century, Refinitiv has been designing, calculating, governing, and publishing the financial benchmarks that lie at the heart of the global financial system. Refinitiv is the administrator of more than 30 key rates and calculation agent for over 40 critical national and regional interest rates and FX benchmarks in 12 different countries, such as Singapore, Hong Kong and Russia. In a wider context, Refinitiv’s WM/Reuters FX benchmarks that are aligned with the IOSCO standards and adopted by leading equity, bond and index publishers, have served and will continue to serve as an objective, unbiased source for comprehensive FX data. Refinitiv administers some of its benchmarks via its subsidiary Refinitiv Benchmark Services (UK) Limited which is an authorized by the UK FCA under the EU Benchmarks Regulation (EU BMR).
For more information about Refinitiv benchmarks, visit here.