Malaysia plans to tighten rules on the daily setting of a key dollar-ringgit reference rate from tomorrow in an effort to boost transparency and shield the domestic market against manipulation.
Contributor banks will need to update the bid and ask prices continuously from 10:55 a.m. to 11 a.m. local time and the rates can be used for transactions among lenders and the central bank for a minimum offering of $5 million, according to a draft statement from the Financial Markets Association of Malaysia obtained by Bloomberg. The spread for the currency pair will be reduced to a maximum of 10 pips from 20, it said. A pip is the smallest unit of a currency’s price, which in U.S. dollar terms equals one-hundredth of a cent.
The rule changes come after the Monetary Authority of Singapore began a probe of the Association of Banks in Singapore in September to ascertain whether there was any manipulation of benchmarks including daily fixings that are used to settle non- deliverable forwards. Bank Negara Malaysia last month told lenders they must use a ringgit fixing set domestically to settle foreign-exchange contracts involving the currency, a person familiar with the matter said on Jan. 29.
Get OANDA’s exclusive weekly Market Pulse FX
HTMLText
| Email Address: | Preferred Format: |
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
View the original article: http://forexblog.oanda.com/20130228/malaysia-setting-tighter-ringgit-fixing-rules-against-manipulation/
A quick look on #UCO website will produce a ton of fresh #MLM ideas to help you get more money. Go to http://www.uconnective.com
To Signup you must have a #UCO coin, you can #BUY it with only $3 from ClickAlert or Send e-mail at clickalert@ymail.com or Call/SMS to +1 (202) 599-1808 and start earning $51 per day!
No comments:
Post a Comment