Reuters appointed by TMA to launch Hong Kong Renminbi swap offer rate fixing

Source: Reuters

The Treasury Markets Association (TMA) and Reuters (LSE: RTR; NASDAQ: RTRSY) today announced that the Renminbi Swap Offer Rate (CNY SOR) Fixing will be launched on 18 December 2006.

Reuters has been appointed by the TMA as the Calculating Agent for the computation and distribution of the CNY SOR Fixing. This latest move by the Treasury Markets Association underscores Hong Kong's commitment to the fast evolving China financial derivatives market and Reuters proven track record in compiling and publishing essential, accurate and reliable industry fixings.

Alex Hungate, Reuters Asia Managing Director said: "Reuters will continue to work with the leading derivatives practitioners in the industry to formulate key benchmark fixings to assist in the development of new instruments in the derivatives market".

Ms Anita Fung, Chairman of the TMA Market Development Committee, which developed the CNY SOR Fixing, said, "The launch of the CNY SOR Fixing is consistent with the TMA's mandate to help develop treasury products and services in Hong Kong to meet new market demands. We believe that the Fixing will provide a much-needed market-based benchmark to facilitate the growth of the Fixing, but would also facilitate the development of products based on these rates," added Ms Fung.

The Renminbi Swap Offer Rate Fixing has been developed by the TMA to serve as a market-based floating rate benchmark for Renminbi Non-deliverable Interest Rate Swaps (CNY NDIRS). CNY NDIRS involves counterparties swapping fixed interest payments for floating rate payments based on the same underlying notional principal, on fixed dates over the life of the contract, with the net cashflows settled in US dollars.

In conjunction with the launch of CNY SOR Fixing, the TMA would also introduce the USD HIBOR Fixing as input in the calculation of the CNY SOR Fixing.

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