HONG KONG, Dec. 15 /Xinhua-PRNewswire/ -- The Treasury Markets
Association (TMA) and Reuters (LSE: RTR; Nasdaq: RTRSY) today announced that
the Renminbi Swap Offer Rate (CNY SOR) Fixing would 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.
Media contacts:
Liam Hwee Tay,
Head of Corporate Communications, Reuters Asia
Tel: +65-6870-3028 / +65-9819-3895
Email: Liam.tay@reuters.com
Steve Clarke,
Reuters Media Relations
Tel: +44-207-542-6865
Mobile: +44-7990-56-6865
Email: steve.clarke@reuters.com
