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Thomson Reuters, the world’s leading source ofintelligent information for businesses and professionals, has been appointed byTaipei Foreign Exchange Market Development Foundation (TFEMDF) as the officialcalculating agent for its offshore renminbi benchmark CNT TAIBOR (the Taipei Interbank Offered Rate).
This keyindustry rate provides a formal benchmark for market participants to referencewhen pricing renminbi loans, interest rate contracts and derivatives products.Its calculation is based on daily rate contributions by 15 regional and globalbanks and is published at 11:15 am every trading day in Taiwan, startingSeptember 1.
Thereference interest rate, along with rates submitted by individual banks, willbe available immediately on Thomson Reuters Eikon, the company’s nextgeneration desktop for financial markets.
“We highly value the development of CNTTAIBOR as the benchmark forms an important part of the financial infrastructureof the offshore renminbi market. In addition, it will further develop Taiwan asan offshore renminbi market,” said Chou A-Ting, Chairman of TFEMDF.
Thomson Reuters has been integral in bringing the renminbito the heart of the global currency system and is helping to facilitate itsgrowing internationalization by offering offshore renminbi reference rates to foreignexchange and money markets. Since 2011, the company has compiled and published Hong Kong’s first offshore renminbi spot fixingrate - the Spot USD/CNY(HK) benchmark. In 2013, Thomson Reuters startedcalculating and publishing the offshore renminbi Hong Kong Interbank OfferedRate benchmark (CNH HIBOR). In Taiwan, Thomson Reuters has been offeringfinancial benchmarks in the capacity of an administrator, calculator anddistributor since 1996. The company continues to work closely with leadingmarket participants in the global markets to offer representative benchmarksthat serve to connect and empower the financial marketplace.
“Thomson Reuters is committed to contributing its expertise in thecalculation, development and governance of benchmarks, and be a trusted andneutral provider in the global financial system,” said Stuart Brown, head ofCollaboration Services and Benchmarks, Asia, Thomson Reuters. “Through our roleas a calculating agent for CNT TAIBOR we will be instrumental in the furtherdevelopment of offshore renminbi.”
“This longawaited reference rate for CNT will bring more transparency and activity to themoney markets as well as FX trading community in Taiwan and the region,” said BethWei, president of Mega International Commercial Bank.
“Taiwan houses a significant amount of CNTdeposits. The availability of a reliable interest rate benchmark will serve tobenefit further internationalization of the renminbi currency,” added LarryHsu, group head of Global CapitalMarket division, CTBC Financial Holding Co.
The banksproviding contributions to the calculation of the new benchmark are:
Bank of China (Taipei Branch)
CTBC Bank
China Development IndustrialBank
Bank Sinopac
E. Sun Bank
MEGAICBC
Taiwan CooperativeBank
Cathay United Bank
FirstBank
Hua Nan CommercialBank
Chang HwaBank
Taipei FubonBank
Taiwan Business Bank
Taiwan Shin Kong Bank
Bank of Taiwan
