Bloomberg FX Fixings delivered on value t+1 basis for 20 currencies at launch
New York – June 4, 2024 – Bloomberg Index Services Limited today announced the launch of Bloomberg FX Fixings (BFIX) value tomorrow outright rates (T+1), the only benchmark on value T+1 basis available to the market.
Accelerating U.S. securities settlement to T+1 on May 28, 2024, raises the risk that transaction funding may not occur in time due to dependency on FX settlement processes involving trade matching, confirmation and payment, all to be completed within currency cut-off times. Using the BFIX value T+1 rates, users can send FX orders into their executing counterparts without being physically present in the designated time zone. While sell-side banks can currently offer this service through forwards desks on a T+1 basis taking opposite risk from the spot desk on a T+2 basis, the forwards desk inherits a tom next FX swap which may ultimately impact banks’ credit facilities when done in sizable volumes. Using BFIX T+1 benchmarks, banks can seek to match or ‘net’ orders to reduce credit impact at scale.
“Providing a solution to what will be a very challenging process for the FX market is where the Bloomberg Index team steps up to meet client needs,” said Colin Gallagher, BFIX Benchmark & Currency Indices Product Manager at Bloomberg Index Services Limited. “With extensive use of BFIX in currency derivative products, accurate date alignment and a stable window environment for bank execution, BFIX is now a well-established FX benchmark clients rely on globally and BFIX T+1 is a natural evolution to our offering.”
The initial launch includes 20 deliverable currencies against the United States Dollar (USD), including Australian Dollar, British Pound, Czech Koruna, Danish Krone, Euro, Hong Kong Dollar, Hungarian Forint, Israeli Shekel, Japanese Yen, Mexican Peso, New Zealand Dollar, Norwegian Krone, Offshore Deliverable Chinese Renminbi, Polish Zloty, Romanian Leu, Singapore Dollar, South African Rand, Swedish Krona, Swiss Franc, and Thai Baht.
Bloomberg FXGO, the premier multi-bank FX trading solution, will be facilitating client auto-routing ticketing and users should reach out to their local FXGO rep for details on how to route a new BFIX T+1 order.
The BFIX family of benchmarks covers spot, forward and non-deliverable forward (NDF) rates for a comprehensive global coverage of currencies and metals. BFIX produces over 1,300 spot currency pairs, and 3,950 forward and NDF fixings. The benchmarks, which are UK BMR compliant and designed in alignment with the International Organization of Securities Commissions’ (IOSCO) principles for financial benchmarks, are used by market participants who need to use foreign exchange rates for portfolio benchmarking, derivatives valuation, index construction and trade execution.
BFIX is administered and calculated by Bloomberg Index Services Limited (BISL). For more information and BFIX methodology, visit our BFIX page. Bloomberg customers can see BFIX offerings, real-time on the Bloomberg Terminal at {BFIX<GO>}.
About Bloomberg Index Services Limited
Bloomberg’s index team has a proven track record in creating industry-leading and bespoke indices across asset classes, including their flagship fixed income, commodity and equity indices. Bloomberg Index Services Limited (BISL) takes an innovative approach to delivering strategic benchmarks that help market participants address their evolving investment needs. The indices, which are seamlessly integrated with other Bloomberg solutions, draw on a comprehensive range of trusted data and reliable technology for calculations, analytics and workflow automation, along with distribution capabilities that can help amplify the visibility of our customers’ products.
About Bloomberg
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