Bank Indonesia Adopts Refinitiv Auctions for Domestic NDFs

Follows strong demand of Refinitiv Auctions in 2019 across Asia, Europe, the Middle East and Africa as Central Banks look to drive innovation and efficiency in financial markets

 

JAKARTA,
INDONESIA / SINGAPORE / LONDON, UK – Media OutReach – 13 February 2020 – 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 an innovative 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 $1.225
trillion in 2019 while seeing rapid volume growth and adoption with a 27% 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 Shari’ah 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,” said 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,” said Stuart Brown, Global Head of
Emerging and Frontier Markets at Refinitiv.

About Refinitiv

Refinitiv is one
of the world’s largest providers of financial markets data and infrastructure,
serving over 40,000 institutions in approximately 190 countries. It provides
leading data and insights, trading platforms, and open data and technology
platforms that connect a thriving global financial markets community – driving
performance in trading, investment, wealth management, regulatory compliance,
market data management, enterprise risk and fighting financial crime. For more
information visit: www.Refinitiv.com .