JPMorgan launches Asian currency index on Bloomberg
05 October 2004 | 983 views | 0
JPMorgan announced today the launch of the Bloomberg-JPMorgan Asia Currency Index (ADXY), the first U.S. dollar tradable index of emerging Asian currencies.
The ADXY creates a benchmark for monitoring Asia's currency markets on an aggregate basis. The ADXY is a spot index of emerging Asia's most actively traded currency pairs valued against the U.S. dollar.
The index's composition is based primarily on trade weights, with an added filter for liquidity that keeps the index updated with macro and market trends. The index is available real-time via Bloomberg's ADXY function.
Until its launch, no industry standard for gauging the aggregate performance of emerging Asian currencies or a straight-forward means of hedging existed. The index provides a solution to help express a view on, or facilitate in, hedging a broad exposure to emerging Asia.
JPMorgan will continue to build the index by offering clients a full range of linked financial products, including non-deliverable forwards (NDFs) and options.
David Puth, global head of currency and commodities at JPMorgan, said: "The Bloomberg-JPMorgan Asia Currency Index is an important step forward for the Asian currency markets. For the first time we are providing the ability to monitor currency moves and leverage currency exposure. JPMorgan's full spectrum of derivative products not only shows our commitment to enhancing liquidity in these markets but also brings new investment and risk management tools to our clients."
"Bloomberg is continually adding innovative functionality to the Bloomberg terminal, to give Bloomberg users the leading edge and to help develop new markets," said Alex Bruce of Bloomberg. "The Bloomberg-JPMorgan Asia Currency Index is an important benchmark for traders and investors with an eye on Asia."