Bloomberg FX Fixings delivered on value t+1
basis for 20 currencies at launch
NEW
YORK, June 4, 2024 /PRNewswire/ -- Bloomberg
Index Services Limited today announced the launch of Bloomberg FX
Fixings (BFIX) value tomorrow outright rates (T+1), the only
benchmark on value T+1 basis available to the market.
Accelerating U.S. securities settlement to T+1 on May 28, 2024, raises the risk that transaction
funding may not occur in time due to dependency on FX settlement
processes involving trade matching, confirmation and payment, all
to be completed within currency cut-off times. Using the BFIX value
T+1 rates, users can send FX orders into their executing
counterparts without being physically present in the designated
time zone. While sell-side banks can currently offer this service
through forwards desks on a T+1 basis taking opposite risk from the
spot desk on a T+2 basis, the forwards desk inherits a tom next FX
swap which may ultimately impact banks' credit facilities when done
in sizable volumes. Using BFIX T+1 benchmarks, banks can seek to
match or 'net' orders to reduce credit impact at scale.
"Providing a solution to what will be a very challenging process
for the FX market is where the Bloomberg Index team steps up to
meet client needs," said Colin
Gallagher, BFIX Benchmark & Currency Indices Product
Manager at Bloomberg Index Services Limited. "With extensive use of
BFIX in currency derivative products, accurate date alignment and a
stable window environment for bank execution, BFIX is now a
well-established FX benchmark clients rely on globally and BFIX T+1
is a natural evolution to our offering."
The initial launch includes 20 deliverable currencies against
the United States Dollar (USD), including Australian Dollar,
British Pound, Czech Koruna, Danish Krone, Euro, Hong Kong Dollar,
Hungarian Forint, Israeli Shekel, Japanese Yen, Mexican Peso, New
Zealand Dollar, Norwegian Krone, Offshore Deliverable Chinese
Renminbi, Polish Zloty, Romanian Leu, Singapore Dollar, South
African Rand, Swedish Krona, Swiss Franc, and Thai Baht.
Bloomberg FXGO, the premier multi-bank FX trading solution, will
be facilitating client auto-routing ticketing and users should
reach out to their local FXGO rep for details on how to route a new
BFIX T+1 order.
The BFIX family of benchmarks covers spot, forward and
non-deliverable forward (NDF) rates for a comprehensive global
coverage of currencies and metals. BFIX produces over 1,300
spot currency pairs, and 3,950 forward and NDF fixings. The
benchmarks, which are UK BMR compliant and designed in alignment
with the International Organization of Securities Commissions'
(IOSCO) principles for financial benchmarks, are used by market
participants who need to use foreign exchange rates for portfolio
benchmarking, derivatives valuation, index construction and trade
execution.
BFIX is administered and calculated by Bloomberg Index Services
Limited (BISL). For more information and BFIX methodology, visit
our BFIX page. Bloomberg customers can see BFIX offerings,
real-time on the Bloomberg Terminal at {BFIX<GO>}.
About Bloomberg Index Services Limited
Bloomberg's
index team has a proven track record in creating industry-leading
and bespoke indices across asset classes, including their flagship
fixed income, commodity and equity indices. Bloomberg Index
Services Limited (BISL) takes an innovative approach to delivering
strategic benchmarks that help market participants address their
evolving investment needs. The indices, which are seamlessly
integrated with other Bloomberg solutions, draw on a comprehensive
range of trusted data and reliable technology for calculations,
analytics and workflow automation, along with distribution
capabilities that can help amplify the visibility of our customers'
products.
About Bloomberg
Bloomberg is a global leader in
business and financial information, delivering trusted data, news,
and insights that bring transparency, efficiency, and fairness to
markets. The company helps connect influential communities
across the global financial ecosystem via reliable technology
solutions that enable our customers to make more informed decisions
and foster better collaboration.
For more information, visit Bloomberg.com/company or request a
demo.
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SOURCE Bloomberg L.P.