Interest in trading emerging markets currencies has increased in recent months due to high level of volatility influenced by firm USD on back of geo-political events. The Thai baht is the latest EMFX currency in focus for the former financial and risk business of Thomson Reuters, Refinitiv. The company boosted its already wide portfolio by starting to source Thai baht and Thai Baht Offshore data from its Matching platform which is Refinitiv’s anonymous central limit order book. Both currencies have become ‘trade’ currencies using the WM/Reuters Trade Methodology and the change was launched on 1 October 2018 and is available since trading session began for the week. After rallying through until April this year, the Thai baht has been sold off in light of global emerging markets tensions. The currency is not the most speculative instrument as the FX flows and liquidity remain tight.
Refinitiv included the data from Matching after a thorough review of the market. The company believes that the move achieves the necessary requirements regarding sufficiency, quality and data hierarchy to evolve these benchmarks to become trade based owing to wide array of experience in designing, calculating, governing, and publishing the financial benchmarks that lie at the heart of the global financial system for nearly quarter of a century from its days as part of Thompson Reuters as it continues administering over 30 key rates and serves as a calculation agent for over 40 critical national and regional interest rates and FX benchmarks administering over 30 key rates and serves as a calculation agent for over 40 critical national and regional interest rates and FX benchmarks even after coming under Refinitiv banner.
The Thai baht addition compliments Refinitiv’s financial benchmarks portfolio as the rates for THB and TOF benchmarks were calculated based on indicative interbank quotes provided by a multitude of financial institutions before the implementation of the algorithm which includes data from “Matching” platform which has greatly boosted the offering’s value in market. Commenting on the move, the Global Head of Benchmarks at Refinitiv, Stephan Flagel said “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, recognizing its enhanced liquidity and transparency”. He also quoted “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. The data is calculated using multiple broad and liquid sources, and is subject to stringent quality controls”.
About The Company :
Refinitiv is one of the world’s largest providers of financial markets data and infrastructure, serving over 40,000 institutions in over 190 countries. It provides leading data and insights, trading platforms, and open data and technology platforms that connect a thriving global financial markets community – driving performance in trading, investment, wealth management, regulatory compliance, market data management, enterprise risk and fighting financial crime.