Thomson Reuters launches FX benchmark service as ECB leaves ‘gap’ for reference rates

The European Central Bank’s changes to reference rates has left a gap in market for those looking to settle cross-border transactions.

Thomson Reuters is to launch a new FX benchmark service for market participants looking to value, hedge and settle cross-border transactions.

The 2pm CET benchmark is an alternative to the European Central Bank (ECB) 2.15pm CET reference rates, which has delayed publishing its euro foreign exchange reference rates.

“ECB plans to publish its euro foreign exchange reference rates at a later time solely for information purposes, there is a need in the market for a reliable, transparent and independent 2pm benchmark,” Thomson Reuters said.

The benchmark provides 32 rates covered by the ECB reference rate with a 30-minute delay, and it’s calculated from market data from several trading platforms.

Tobias Sproehnle, global head of benchmarks at Thomson Reuters said the ECB’s changes to its reference rates “have left a gap for corporates that need a trusted reference rate to settle cross-border transactions on a daily basis.”

He added: “The WM/Reuters 2pm CET benchmark provides them with a highly-monitored and robust solution for this task that comes with the comfort that it fully aligns to IOSCO principles for benchmark calculation.”