JPMorgan and Bloomberg have launched the Bloomberg-JPMorgan Asia Currency Index, the first tradable index of Emerging Asia currencies.
David Puth, global head of currency and commodities at JPMorgan, said: "The Bloomberg-JPMorgan Asia Currency Index is an important step forward for the Asia currency markets. For the first time we are providing the ability to monitor currency moves and leverage currency exposure. JPMorgan's full spectrum of derivative products not only shows our commitment to enhancing liquidity in these markets but brings new investment and risk management tools to our clients."
The Bloomberg-JPMorgan Asia Currency Index (ADXY) is the definitive benchmark for monitoring Asia's currency markets on an aggregate basis. The Index will be available exclusively on the Bloomberg terminal. The Index is available real-time to Bloomberg users via Bloomberg's ADXY function.
The Bloomberg-JPMorgan Asia Currency Index is a spot index of Emerging Asia's most actively traded pairs valued against the U.S. Dollar. The composition of the index is primarily based on trade weights, with an added filter for liquidity that keeps the index abreast of macro and market trends.
At present there is no industry standard for gauging the aggregate performance of Emerging Asia currencies, nor a straightforward means of hedging. The Index provides an innovative and efficient solution to help express a view on, or facilitate in, hedging a broad exposure to emerging Asia. JPMorgan will continue to build on this index by offering clients a full range of financial products, including non-deliverable forwards (NDFs) and options.
Alex Bruce of Bloomberg said: "Bloomberg is continually adding innovative functionality to Bloomberg users across global markets. The Bloomberg-JPMorgan Asia Currency Index is an important addition to Bloomberg's comprehensive service. We expect this new currency index to be a benchmark for traders and investors with an eye on Asia."