Reuters to Calculate Official Spot USD/HKD Fixing Rate
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HONG KONG, April 3 / -- Reuters ( NASDAQ: RTRSY) today announced it will be the official exclusive calculator and distributor of the benchmark spot US dollar /Hong Kong dollar fixing rate. This new official spot USD/HKD fixing is owned and administrated by Treasury Markets Association (TMA) in Hong Kong and is planned to launch on 6 April 2006.
The fixing is calculated by averaging the middle quotes after excluding the highest three quotes and lowest three quotes from the contributed rates provided by twenty contributing banks. The spot USD/HKD fixing will serve as a benchmark for the market exchange rates of USD against HKD at 11:00 a.m. Hong Kong time.
The fixing is expected to provide a reference rate for the pricing of Hong Kong dollar-linked currency products. A total of 20 financial institutions active in the Hong Kong dollar foreign exchange market have been designated by the TMA to contribute the price quotes for the calculation of the fixing. The panel of contributing banks will be reviewed regularly.
"The availability of a representative fixing for the spot USD/HKD exchange rates will be conducive to the further development of the Hong Kong dollar-related currency products in Hong Kong," said Mr Eddie Tan, Chairman of the TMA Codes and Standards Committee, which developed the Fixing in consultation with market participants.
"The TMA will continue to work closely with market participants to perfect the codes and standards in the Hong Kong treasury markets and develop new products and services to meet market demand," said Mr Y.K. Choi, Chairman of the TMA Executive Board.
"Reuters is honoured to be appointed by TMA as the official and exclusive calculating agent for the fixing. Market participants have noted that many banks have launched many innovative FX-linked structured products in the markets and this fixing is intended to meet their needs to reference a benchmark HKD rate," said Kenneth Tsui, Managing Director in Reuters North Asia.
"Reuters was selected because of its outstanding experience in processing and publishing global currency and interest rate fixings. The launch of this fixing will provide the financial community with a superior quality benchmark fixing on a global distribution platform," said Alex Hungate, Managing Director in Reuters Asia.
About Reuters
Reuters ( www.about.reuters.com ), the global information company, provides indispensable information tailored for professionals in the financial services, media and corporate markets. Its trusted information drives decision making across the globe based on a reputation for speed, accuracy and independence. Reuters has 15,300 staff in 89 countries, including staff from the acquisition of Telerate in June 2005. It also includes 2,300 editorial staff in 189 bureaux serving 128 countries, making Reuters the world's largest international multimedia news agency. In 2005, Reuters revenues were GBP2.4 billion.
Reuters and the sphere logo are the trade-marks of the Reuters group of companies.
About Treasury Markets Association (TMA)
For more information about TMA, please refer to the website at www.tma.org.hk .
The mission of the TMA is to further promote the professionalism and competitiveness of the treasury markets in Hong Kong, through developing appropriate codes and standards for the treasury markets, promoting market and product development, enhancing the professionalism of market practitioners, and promoting the profile of Hong Kong's treasury business. The TMA has two types of members -- institutional members and individual members. Institutional members include financial institutions, brokers, and corporates involved in the treasury markets. Practitioners working in these markets including those who are working in the front office, middle office and back office may join as individual members.
Contacts:
Liam Hwee Tay
Reuters Corporate Communications
Tel: +65-68703028
Email: Liam.tay@reuters.com
Yvonne Diaz
Reuters Corporate Communications
Tel: +44-20-7542-2615
Email: yvonne.diaz@reuters.com
Web sites: www.about.reuters.com
www.tma.org.hk
Source: Reuters
CONTACT: Liam Hwee Tay, +65-68703028, or Liam.tay@reuters.com, or Yvonne
Diaz, +44-20-7542-2615, or yvonne.diaz@reuters.com, both of Reuters
