By Gail Moss2021-05-11T08:17:00+01:00
Pension funds and asset managers hedging foreign currency exposure now have access to an alternative FX benchmark offering them substantial savings on currency trades, according to the company which has developed it.
Many institutional investors use the existing so-called “London 4pm fix” – managed by Refinitiv – as the rate at which they agree with their bank to exchange currencies to settle their accounts at the end of every day.
The 4pm fix produces a set of exchange rates calculated as the average at which FX trades take place on the London FX exchanges (primarily Reuters) in a five-minute window centred on 4pm UK time every weekday.