Kamis, 13 Februari 2020 16:26:00
Bank Indonesia Adopts Refinitiv Auctions for Domestic NDFs
Follows strong demand of Refinitiv Auctions in 2019 across Asia, Europe, the Middle East and Africa as Central Banks look to drive innovation and efficiency in financial markets
JAKARTA, INDONESIA / SINGAPORE / LONDON, UK, - 13 February 2020 - Bank Indonesia (BI) has adopted Refinitiv Auctions for Domestic Non-deliverable Forwards (NDFs), as Central Banks increasingly rely on electronic tools to ensure their markets function in an orderly, efficient manner. Refinitiv Auctions is an innovative platform that combines a trading venue, real-time view of bid submissions, market surveillance and processing capabilities.
Domestic NDFs are a monetary policy instrument employed by the Central Bank to enhance financial markets. It also provides an alternative hedging instrument for market participants. In addition, the Indonesian Rupiah-settled NDFs auctions are run on a daily basis over Refinitiv Auctions to support a stable exchange rate.
With Indonesian member banks, brokers and the Central Bank onboard, Refinitiv Auctions underpins efficient performance of NDF auction tenders. The solution helps BI automate trade processes in a secure environment.
Refinitiv Auctions facilitated over $1.225 trillion in 2019 while seeing rapid volume growth and adoption with a 27% year on year increase in customers, and is now used by Central Banks and Corporates in Europe, the Middle East, Africa and Asia. Refinitiv is able to address Central Banks and Corporates auction needs on data residency and infrastructure costs by offering its solution uniquely on either a hosted or deployed basis. Support is now also in place for Islamic Finance Shari'ah compliant auctions for both Central Banks and Corporates.
"We highly appreciate the collaboration between Bank Indonesia and Refinitiv to ensure that monetary operations in Indonesia can be done in more efficient way through Auctions," said Nanang Hendarsah, Head of Monetary Management Department at Bank Indonesia. (*).