Martin Spurr Head of Integrated Treasury Solutions at The Royal Bank of Scotland
Martin Spurr Head of Integrated Treasury Solutions at The Royal Bank of Scotland

Benchmark Execution – moving onto the next stage

Martin Spurr looks at how the functionality of current Benchmark Execution offerings is being improved.

First Published: e-Forex Magazine 19 / Features / July, 2005

Martin Spurr, Head of Integrated Treasury Solutions at The Royal Bank of Scotland, talks with e-Forex about how the functionality of current Benchmark Execution offerings is being improved.Martin, why is Benchmark Execution gaining in such popularity?There are several reasons why Benchmark Execution is gaining popularity both in Europe and the US. With regulations placing an increasing onus on corporations and fund managers to provide full disclosure of financial transactions, the way that Foreign Exchange is executed and accounted has now changed. Two primary pieces of legislation are the U.S Sarbanes Oxley act, which complements the existing FAS133, and the European IAS39. The former is a corporate governance act regarding key controls and how they are documented, whereas the latter is an accounting standard.In practical terms it means that an FX benchmark can provide good evidence of Fair Market Value and be used for all FX derivatives accounting. This in effect turns the execution method into a valuation...continued

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