The UK Treasury has appointed FTSE Russell, the index provider, and Tradeweb, an electronic trading platform, to jointly provide end-of-day reference prices for gilts and treasury bills.
The two firms said they were creating ‘Tradeweb FTSE Gilt Closing Prices’ to support UK Debt Management Office (DMO) plans to change the way prices are released.
The move follows the DMO’s announcement that it intends to withdraw from the provision of reference prices. An independent review into successor arrangements is to be launched.
Tradeweb becomes the “single input data source” of market pricing for the UK market, said Enrico Bruni, managing director, head of Europe and Asia business at Tradeweb.
Tradeweb and FTSE Russell will produce end-of-day gilt reference prices in a manner consistent with International Organization of Securities Commissions principles.
FTSE Russell will operate as the administrator of the reference prices and will use these prices in the calculation of the FTSE Actuaries UK Gilts Index Series.
It is expected that the transition to the Tradeweb FTSE Gilt Closing Prices will take place in the first quarter of 2017.
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