WMBA – Overview

WMBA – A market leader in governance of financial benchmarks

WMBA Limited was incorporated in 2008 to administer the data business of the European Venues & Intermediaries Association (previously known as the Wholesale Markets Brokers’ Association).

A leader in the governance of financial indices, WMBA Limited was one of the first FCA-approved Benchmark Administrators under the UK Benchmarks Regulation (‘BMR’) and formerly under the EU Benchmarks Regulation (‘BMR’) and its predecessor, FCA MAR from the outset of ‘Critical Benchmarks’ in the spring of 2015.

On 1st April 2015, SONIA and RONIA, both administered by WMBA Limited at the time, became specified benchmarks under the UK Financial Services and Markets Act 2000, and as such, WMBA Limited became regulated by the Financial Conduct Authority (FCA) for the activity of administering benchmarks.

WMBA Limited was previously the administrator of the Sterling Overnight Index Average (‘SONIA’), introduced in March 1997, until the Bank of England took over the control of the Benchmark in April 2018. From that point, and until the methodology was changed later in 2019, WMBA Limited was the benchmark calculation agent and publisher for SONIA under a direct licence from the Bank of England, which became the Benchmark Administrator.

WMBA Limited ceased to be an Authorised Benchmark Administrator on 20th October 2022, at which point the RONIA and EURONIA benchmarks were downgraded to index status and thus no longer subject to the same intense scrutiny from the regulatory bodies.

WMBA, together with its sister association, LEBA, have developed and administered indices across financial and non-financial instruments on behalf of its members and customers in order to aggregate venue activity and to promote fair and effective market structure.

At a glance:

  • Strongest GCC, MENA and emerging markets data from all global brokers
  • Based on underlying liquidity from local and international clients
  • FX, Interest Rate Derivatives (Swaps, Risk Free Rates, Basis Swaps and Cross Currency Swaps), Fixed Income and FRA’s
  • GCC, MENA, plus RUB
  • Full pricing curves offering real time and end of day data

WMBA data coverage:

Ronia

Introduced in 2011, RONIA is the Repurchase Overnight Index Average (‘RONIA’). A UK money market index that tracks actual market overnight funding rates. On 1st April 2015, RONIA became a regulated benchmark as governed by the Financial Conduct Authority (FCA). RONIA is a measure of the rate at which interest is paid on secured sterling overnight wholesale funds in circumstances where the collateral is not subject to any exceptional, special, nor specific demand in the cash market.

Data contributed by BGC Group, BrokerTec (part of the CME Group) and Tullett Prebon (part of the TP ICAP Group).

Euronia

Introduced in January 1999, EURONIA is the Euro Overnight Index Average (‘EURONIA’). This index tracks actual market overnight funding rates. EURONIA is a measure of the rate at which interest is paid on Euro denominated short-term wholesale funds in circumstances where credit, liquidity and other risks are minimal.

Data contributed by BGC Group, Tullett Prebon and ICAP (both part of the TP ICAP Group) and Tradition (UK) Ltd.

On each publication day RONIA and EURONIA are measured as the volume weighted average price (VWAP) of interest rates paid on eligible transactions.

Why take WMBA data?

  • Interesting to international and local, regional market participants
  • Data sourced from highly liquid market participants
  • Low cost daily price indices for overnight funding rates
  • Suitable for both pre and post trade analytics
  • Based on the highest market share and underlying liquidity 
  • Reliable, proven data
  • Available via Bloomberg or directly from WMBA
Use cases
Front office users:Trading, pricing engines, pre-trade analysis. Buy and Sell side, all sizes.
Middle and back office:Risk management, end of day settlement, mark to market, evaluated pricing and valuations, pricing, accounts, compliance, analysts, data science post-trade analysis.
Small investment firms:Market surveillance, risk management, investment management and asset allocation.
Other participants:Other market participants who are not actively trading on the markets but need daily, liquidity-based reference pricing.

To find out more contact us on team@eosedata.com

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