NEX Data and JBOND launch Japanese repo index rate
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NEX Data and JBOND launch Japanese repo index rate 18 July 2018London Reporter: Jenna Lomax
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NEX Data and JBOND, the electronic platform for trading in Japanese repo agreements, have launched the JBOND NEX Repo Index, which will measure the cost of funding for Japanese government bonds.
According to NEX, the JBOND NEX Repo Index provides an insight in to the overall cost of funding in the dealer to dealer market by taking a volume-weighted average of repo rates from trades, which use Japanese government bonds as collateral.
Launched on 18 June, the JBOND NEX Repo Index is calculated daily by NEX Data as the benchmark administrator, using eligible one day repo transactions traded on JBOND and centrally cleared through the Japan Securities Clearing Corporation.
JBOND is the primary venue for the trading of Japanese government repo agreements.
These benchmarks will reflect accurate and existing prices in the marketplace, said NEX.
The methodology used is consistent with International Organization of Securities Commissions Principles for Financial Benchmarks.
The Japanese Yen (JPY) repo market has been very active of late with the average month-end outstanding for 2017 reaching 160 trillion Yen, according to NEX.
Kevin Taylor, managing director of NEX Data, said: “By combining NEX Data’s index calculation expertise and transparent methodology with transaction-backed data from the JBOND platform, we are bringing additional transparency to the Japanese government bond markets and helping the market better assess the cost of funding.”
Kiyomi Saito, CEO of JBOND, commented: “The Japanese Government Bonds market is one of the most mature markets in the world. Yet JGB repo market information available to global investors is very limited. This index will certainly provide far greater market transparency.”
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