Hong Kong Monetary Authority - Launch of Spot USD/HKD Fixing

Press Releases

03 Apr 2006

Launch of Spot USD/HKD Fixing

The Treasury Markets Association (TMA) announced today that the Spot USD/HKD Fixing would be formally launched on 6 April 2006.

The Fixing is calculated by averaging the middle quotes after excluding the highest three quotes and lowest three quotes from the rates provided by the Designated Banks (see Annex A for specifications about the Fixing).

The Spot USD/HKD Fixing will serve as a benchmark for the market exchange rates of USD against HKD at 11:00 a.m. Hong Kong time. The Fixing is expected to provide a reference rate for the pricing of Hong Kong dollar-linked currency products.

A total of 20 financial institutions active in the trading of Hong Kong dollar in the foreign exchange market have been designated by the TMA to contribute the price quotes for the calculation of the Fixing. The panel of contributing banks will be reviewed regularly.

Reuters Limited has been appointed as the Calculating Agent for the computation and dissemination of the Spot USD/HKD Fixing.

The calculated Spot USD/HKD Fixing will be published on both Reuters RIC <HKDFIX=> and Reuters page HKDFIX at 11:15 a.m. Hong Kong time from Monday to Friday, except public holidays, or if Typhoon Signal No. 8 and above or the Black Rainstorm warning is hoisted.

"The availability of a representative Fixing for the Spot USD/HKD exchange rate will be conducive to the further development of the HKD-related currency products in Hong Kong," said Mr Eddie Tan, Chairman of the TMA's Codes and Standards Committee, which developed the Fixing in consultation with market participants.

"The TMA will continue to work closely with market participants to perfect the codes and standards in the Hong Kong treasury markets and develop new products and services to meet market demand," said Mr Y.K. Choi, Chairman of the TMA's Executive Board.

For more information about TMA, please refer to the website at www.tma.org.hk.

For further enquiries, please contact:
The Treasury Markets Association Secretariat, at 2878 8046

Treasury Markets Association
3 April 2006

Annex A: Reference Guide for Spot USD/HKD Fixing

Item	Specifications
Fixing Ownership	Treasury Markets Association (TMA)
Calculating Agent	Reuters Limited
Calculation Methodology	The Fixing is determined by averaging the middle quotes after excluding the highest 3 quotes and lowest 3 quotes from the 20 Designated Banks. There should be a minimum of 16 contributed rates received in order to calculate the Fixing.
Contribution Banks	20 Designated Banks appointed by the TMA
Fixing Date	Every Hong Kong business day from Monday to Friday except public holidays.
No. of Decimal Points	Rounded upwards to four decimal places.
Data Contribution	The contributed rates must be spot USD/HKD rates at 11:00 a.m. of the day. The data must be uploaded between 11:00 a.m. to 11:10 a.m. Hong Kong time.
Publication of Fixing Rate	The computed Spot USD/HKD Fixing shall be published on both Reuters Instrument Code <HKDFIX=> and page HKDFIX at 11:15 a.m. Hong Kong time.
Special Fixing Arrangement	The Fixing shall not be computed nor published if Typhoon Signal No. 8 and above or Black Rainstorm warning is hoisted for the whole day or un-hoisted after 12 noon that day. However, if the Typhoon Signal No. 8 and above or Black Rainstorm warning is un-hoisted before 12 noon, the Fixing shall be computed and published at 2:15 p.m. that day. And the contributed rates must be the spot USD/HKD rates at 2:00 p.m. of that day.
Contact details	Reuters Helpdesk: (852) 3009-5616

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