Bloomberg, the global business financial information and news provider, today announced that it has successfully completed an independent assessment conducted by Ernst & Young, confirming the alignment of the BFIX family of benchmarks with the International Organization of Securities Commissions’ principles for financial benchmarks.
The confirmation that BFIX is aligned with the IOSCO Principles is an important milestone.
In the context of the European Central Bank’s withdrawal of its reference rates from use as transactional benchmarks, the announcement demonstrates Bloomberg’s commitment to providing market participants with dependable FX benchmarks.
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Commenting on the company’s achievement, Robert Friend, Global Head of Bloomberg’s FICC and Foundational Applications said: “The confirmation that BFIX is aligned with the IOSCO Principles is an important milestone, it is a recognition that our benchmarks reflect industry best practices and are primed to meet the needs of market participants as global regulatory reforms unfold. As central banks such as the ECB are pulling their reference rates from use as transactional benchmarks, we are ensuring we continue to provide market participants with dependable FX benchmarks”.
The BFIX family of benchmarks covers spot, forward and non-deliverable forward rates for a comprehensive global coverage of currencies. The benchmark is used by market participants as a fix for portfolio benchmarking, derivatives valuation, index construction, and trade execution.
Users rely on BFIX’s robust Time Weighted Average Price (TWAP) methodology for enhanced price transparency. By capturing streaming bid/ask data from a deep and broad pool of FX pricing providers, Bloomberg is able to produce a more accurate representation of the market at each fix.
The BFIX family of benchmarks is administered and calculated by Bloomberg and is available without extra charge via the Bloomberg Terminal.