Thomson Reuters/SGX SFI Chosen as UOB’s Recommended Fixed Income Benchmark

Singapore Exchange (SGX) and Thomson Reuters announced today that the TR/SGX Singapore Fixed Income Indices (TR/SGX SFI) has been selected as the recommended fixed income benchmark by United Overseas Bank (UOB) following the discontinuation of the UOB SGS Index.

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TR/SGX SFI offers a comprehensive solution for tracking the performance of investments in the Singapore debt markets. It offers wide coverage of over 60 government, statutory board and corporate bond indices and a time-specific assessment of the fair market value of SGD bonds, which are priced objectively and independently by the Thomson Reuters Evaluated Pricing Service.

This is an important success for the collaboration between SGX and Thomson Reuters.

Chew Sutat, Head of Equities and Fixed Income at SGX, said: “This is an important success for the collaboration between SGX and Thomson Reuters, and supports the positive global trend of banks such as UOB shifting to independent benchmarking solutions. The TR/SGX SFI help to enhance market transparency for both institutional and retail investors and complement SGX’s efforts to drive Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term in the secondary bond market.”

TR/SGX SFI uses transparent, rules based methodologies that adhere to the IOSCO principles for financial benchmarks. UOB will become one of the contributors of prices for the indices, along with local Market Makers Market Makers Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Read this Term. The bank has communicated the recommended transition procedures for the outgoing SGS index to all of its existing users.

Jimmy Koh, Head of Global Economics and Market Research at UOB, added: “There is an increasing awareness of independent and objective benchmarking within the financial community. The TR/SGX SFI will further promote market transparency and neutrality in Singapore’s debt capital market.”