The WM/Reuters FX Benchmark, also known as the WM/Reuters benchmark rate, is a benchmark exchange rate that is used to determine the value of various currencies against the US dollar. The benchmark rate is calculated using data from a variety of sources, including contributions from market makers and electronic trading platforms, and is designed to provide a reliable and transparent reference rate for the foreign exchange (FX) market.The benchmark is calculated by the WM Company, a subsidiary of State Street Global Advisors, and is published by Reuters, a subsidiary of Thomson Reuters. The benchmark is calculated at specific times during the day and is based on data collected over a short period of time, typically one minute.The WM/Reuters FX Benchmark is widely used by financial institutions, corporations, and other market participants as a reference rate for pricing currencies, managing currency risk, and settling financial transactions. It is also used by regulators as a benchmark for compliance with various regulatory requirements, such as the Foreign Account Tax Compliance Act (FATCA) and the Dodd-Frank Wall Street Reform and Consumer Protection Act.It's worth noting that the benchmark rate is not an actual exchange rate, but rather a reference rate that is used as a basis for other FX rates. The actual exchange rates used for financial transactions can vary from the benchmark rate due to various factors, such as market liquidity, credit risk, and other market conditions.
