Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

London forex fix moves to five-minute window in December

Published 17/11/2014, 15:13
London forex fix moves to five-minute window in December
USD/RUB
-
NXGN
-
STT
-
TRI
-

By Patrick Graham LONDON (Reuters) - London's benchmark foreign exchange "fixings" will move to a five-minute calculation window from one-minute currently as of 2200 GMT on Sunday, Dec. 14, the WM Company said in a memo sent to banks on Monday.

The move by WM, a unit of State Street Corp (N:STT), follows the levying of the first fines on banks in a row over alleged manipulation of foreign exchange markets and the fixings, used to set reference values for thousands of contracts worldwide.

The widening of the window is also the first clear sign that recommendations made in September by global regulators the Financial Stability Board for changes to the fixings are being implemented by the industry.

Other changes, agreed after consultations with banks, asset managers and other stakeholders, include changes to trading floors which will keep client orders to be executed at the fixing rate separate from spot trading desks.

The London or "WM/Reuters" fix relates to several exchange rates and is compiled using data on actual transactions from trading systems like those run by Thomson Reuters (TO:TRI) and ICAP-owned EBS (L:IAP).

The rates for the fixings, at the centre of a global investigation into alleged market manipulation that saw five major banks fined last week, are calculated by WM.

Thomson Reuters is the parent company of Reuters News, which is not involved in the process.

The memo also said Thomson Reuters Matching trade and order data would be added into the calculation for the euro, yen, Swiss franc and rouble.

(Additional reporting by Clare Hutchison; editing by Mike Dolan and Keith Weir)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.