The WM Co. and Reuters launched a new service today listing the closing forward foreign exchange rates in an effort to create a global standard.
The WM/Reuters Closing Forward Rates will cover 36 currencies in which there exists a significant level of forward trading. Bid and offered rates against the U.S. dollar and British sterling for one-, two-, three-, six- and 12-month periods will be listed. Rates will be struck at 4 p.m. London time.
The rates will be used in valuing forward currency positions and calculating currency-hedges indexes throughout the world. Several major global index compilers are expected to adopt the standard.
The service complements the WM/Reuters Closing Spot Rates, which have been the global standard for index calculation, valuation of global portfolios and general reference since their launch three years ago.