ING is launching proprietary global emerging markets indices, aiming to provide clients with a new route for gaining exposure to emerging markets currencies.
Bloomberg is responsible for providing the independent calculation and administration of these indices. In addition to leveraging Bloomberg’s expertise in strategy index development, calculation and administration, ING is using Bloomberg’s BFIX data source to use in the index, stating in a release issued today that it is an independent benchmark for currency rates that is regularly updated and widely used by the FX market.
The Bloomberg ING Global Emerging Markets FX Indices are designed to enable clients to focus on how emerging market currencies have performed against the US dollar. The indices track the performance of a basket of 12 equally weighted emerging market currencies against the US dollar. There will also be both a long-only and long-short versions available to trade. The long-short version enhances returns by applying a volatility-based risk filter.
Guy Thomas, head of FX rates and credit trading at ING, says the indices allow clients to “take exposure to the emerging markets currency asset class in a cost-effective, efficient and transparent way”.
Ji Zhuang, head of custom strategies business at Bloomberg, adds: “As regulations evolve and investors increasingly demand more benchmark transparency, we are helping firms across the globe turn their investment strategies into indices, and offering outsourcing of in-house index calculation and administration to our managed platform.”