08 April 2024

BBVA launches a complete family of FX indices as a benchmark index manager

BBVA gives a new boost to its QIS business by expanding its offering with a full family of FX indices. It has received authorization from the CNMV to become a benchmark administrator under the European regulation of the European Parliament and the Council, and registered with the European Securities and Markets Authority (ESMA).

In November 2020, BBVA created its own Quantitative Investment Strategies (QIS) business, which focuses on designing, producing and distributing investment strategies that materialize in self-created indices aimed at all types of investors. Over the last three years, BBVA has consolidated a portfolio of 30 indices and 160 mathematical and currency variations that represent thematic, smart beta and alternative risk premia strategies, as well as others tailored to clients' needs.

Now the bank is going one step further by expanding its offering aimed at institutional investors, including large Spanish and European asset managers, with a complete family of foreign exchange (FX) indices. BBVA's QIS business is fulfilling its strategic objective of offering investment solutions to its clients in different asset classes.

The new indices cover a universe of 22 developed and emerging market currencies that are included in trend, carry and relative value strategies. This represents an increase in the catalog of more than 60 indices, including the different variations, which are managed by BBVA after it became the first Spanish bank with permission to be an index administrator. This pioneering role in Spain will allow the bank to further accelerate the expansion of its offer and increase flexibility to better adapt to the needs of its clients.

BBVA has assigned resources to activities related to index administration, with a team of six professionals specialized in the technical and governance functions and led by Fernando Gonzalez Grisolia.

The indices are managed under the European Benchmark Regulation, which seeks the best protection of investors by ensuring the soundness of the benchmarks and their proper use.

Pablo Suárez, Global Head of QIS, explains: "The goal of our QIS business has always been to provide our clients with transparent investment solutions that enable them to navigate different market environments. We are now taking a further step in that direction by increasing our offering, in this case with currencies as an investment asset. And we are doing it with the support of a team of excellent professionals and a robust and scalable technological platform that will allow us to continue increasing our offer in the various asset classes."