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Screenshot of a breaking news alert e-mail from Q2 2017
Thomson Reuters today announced it has acquired WM/Reuters FX benchmark rate calculation business of The World Markets Company (WM) from State Street Corporation. The acquisition will be effective immediately.
The acquisition of the WM/Reuters FX benchmark means Thomson Reuters will own, administer and calculate this important benchmark, which is used by financial professionals across the world for portfolio valuation, performance measurement, index calculation, and as a price reference in financial contracts. The benchmark calculation business was formerly owned and managed by The World Markets Company PLC, a subsidiary of State Street Corporation, using data provided by Thomson Reuters and others.
“We are excited about the addition of this essential service to our growing number of industry benchmarks and indices,” said Tobias Sproehnle, head of Benchmarks, Thomson Reuters. “The FX market continues to evolve and grow in complexity, so it is increasingly important that FX benchmarks are reliable, transparent and independent. As the trusted, independent provider of critical data to power the world’s financial markets, we are committed to ensuring that this benchmark continues to meet the needs of its many clients.”
The WM/Reuters foreign exchange benchmark is one of the important benchmarks now regulated by the UK Financial Conduct Authority and is continuously enhanced to ensure it meets the highest standards of industry best practice.
“The WM/Reuters FX benchmark is valued by clients worldwide,” said Abel Clark, managing director, Financial, Thomson Reuters. “We will be working alongside those clients, together with the regulatory authorities and market participants, as we continue to invest in enhancements to ensure this benchmark series remains a reliable, trusted and fundamental component of market infrastructure.”
“The decision to sell WM/Reuters FX benchmark makes good strategic sense for both companies,” said James (JR) Lowry, senior vice president and head of State Street Global Exchange for EMEA. “ It allows State Street to focus on the delivery of its core services, and Thomson Reuters to focus on its fundamental strategy to deliver best-in-class client data and information services. We’re confident that Thomson Reuters will ensure the high standards of the WM/Reuters foreign exchange benchmark are maintained.”
Thomson Reuters will continue to employ the same WM team to operate the service, while using the patented methodology that has led to the widespread acceptance of the benchmark series in the FX markets.
To see the full release from Reuters click here.
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