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 a 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 USD1.225 trillion in 2019 while seeing rapid volume growth and adoption with a 27 per cent 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 Shariah 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,” says Nanang Hendarsah, Head of Monetary Management Department at Bank Indonesia.
“The launch of Refinitiv Auctions for domestic NDF operations is a great example of our long-lasting partnership with Bank Indonesia, driving innovation in Asian financial markets. With Auctions catering to multi-purpose auction techniques, bringing more transparency and efficiency to monetary policy execution mechanisms in emerging and frontier markets, we are pleased to be supporting Bank Indonesia as they stand at the forefront of innovation in financial technology,” says Stuart Brown, Global Head of Emerging and Frontier Markets at Refinitiv.
Source Institutional Asset Manager