Refinitiv is enhancing the WM/Reuters Thai Baht Spot FX Benchmarks with data sourced from Matching, the firm’s anonymous central limit order book. This has allowed the Thai baht (THB) and Thai baht offshore (TOF) benchmarks to become ‘trade’ currencies using the WM/Reuters Trade Methodology. This change was launched on 1 October 2018 and is available now, the firm says.
Previously, the THB/TOF benchmarks were calculated from indicative interbank quoted rates, provided by multiple financial institutions. Following analysis about the feasibility of introducing transactional data from the available FX trading platforms and a public consultation, Refinitiv says it found that the inclusion of data from Matching achieves the necessary requirements regarding sufficiency, quality and data hierarchy to evolve these benchmarks to become trade based.
Refinitiv’s WM/Reuters service provides spot rates covering 150+ currencies. Its published and transparent calculation methodology is fully aligned with the IOSCO Principles for Financial Benchmarks, and the WM/Reuters 4pm rates are administered by Thomson Reuters Benchmark Services Limited, authorised as a Benchmark Administrator under EU BMR.
“The WM/Reuters FX Benchmark is valued by clients worldwide and we are proud to evolve the THB/TOF benchmarks to reflect accurately the new reality of the market, recognising its enhanced liquidity and transparency,” says Stephan Flagel, global head of benchmarks at Refinitiv. “Our WMR leadership and colleagues at Refinitiv have unparalleled market expertise and work closely with diverse market participants globally to ensure that our benchmarks are compliant with global regulations, are calculated using multiple broad and liquid data sources, and are subject to stringent quality controls to connect and empower the global financial community. The evolved Thai baht benchmarks are case in point.”