London, 11 September
Distributed by PR Newswire on behalf of WDX Organisation
LONDON, September 11 /PRNewswire/ -- This week the world's financial markets will see the first ever execution and settlement of a trade conducted in Wocus(TM) (World Currency Unit), the newly-introduced world currency. The Wocu has been developed as a derived world currency unit to allow corporations, financial institutions, governments and even individuals to trade across national boundaries and hold foreign assets with minimal risk of losses caused by exchange rate fluctuations.
Whilst international trade is conducted in US dollars or Euros a sharp change in exchange rates causes huge differentials, vastly complicating risk management and forward planning. With the emergence of Russia, China and India into the world markets a less volatile world currency is needed. As the Wocu is a derivative of the exchange rates of the world's top 20 currencies as measured by GDP it substantially reduces the risk factors. WDX Organisation, the company behind the Wocu, has weighted its algorithm in line with these GDPs, creating a demonstrably less volatile and totally apolitical currency unit.
Howard Flight, fund manager, consultant, politician and author of 'ALL YOU NEED TO KNOW ABOUT EXCHANGE RATES' was the keynote speaker at the launch. He said: "I expect this to be an important moment for the history of currency - a new currency reference is being born which should be very useful for both major buyers and sellers of world commodities." He adds: "The questions are as to who will use it? WDX commercial arrangements are lining up major banks to both trade in and settle international trade transactions on behalf of corporate clients in Wocus. Banks and InterDealer Brokers will also trade Wocu derivatives for clients. It is surprising the IMF has not modernised the SDR, which new technology would enable. The Wocu does just that".
How does the Wocu differ from the IMF's SDR? The SDR, while a valuable tool, is based on 4 currencies and re-weighted only every 5 years, unlike the Wocu which is re-weighted by an independent institute every six months (when the IMF releases its GDP figures).
Michael King, WDX managing director, said: "Market participants and academics are telling us that the Wocu will be well-received. We are offering organisations, governments, and, through them, individuals, a new instrument of great elegance and power. Its use will herald less risk, less volatility and more certainty. Some even see it as the answer to the reserve currency issue. I am delighted that the Wocu, the result of much academic research and technical development, is now a reality."
Flight comments: "Corporate Treasurers and ACT members really like the Wocu concept as it reduces volatility and exchange rate risk and the concept of the Wocu is happily straightforward."
Notes to editors
About WDX
The WDX Organisation sponsors the development and use of the derived basket instrument called the Wocu(TM). The Wocu is being launched by WDX Organisation which has also formed and sponsored The WDX Institute. http://www.wocu.com
About the Wocu
The Wocu was conceptualised in 1996, and after much research and discussion over the next decade whilst the concept was tested for volatility and other characteristics, a detailed plan for the advancement of the Wocu was drawn up; it was made ready for launch in 2009. The Wocu is a derivative of the exchange rates of the world's top 20 currencies as measured by GDP. The algorithm is weighted in line with these GDPs, resulting in a demonstrably less volatile currency unit. It is re-weighted by the WDX Institute every six months, when the IMF produces its GDP figures.
For a limited period following the Wocu introduction the live prices for the Wocu against other currencies are available by clicking the 'Live Prices' menu button under the 'Wocu' menu button on the WDX website (http://www.wocu.com)
Since the Bretton Woods Agreement stalled the markets themselves have decided the value of major floating currencies. This situation will not be altered by the Wocu but it will be associated with much lower volatility and significantly reduced risk.
The Wocu was introduced to market participants on September 10th, 2009 and will be formally launched in a commercially available form on January 1st, 2010.
About the WDX Institute
The WDX Institute is a research body that has been formed and sponsored by the WDX Organisation to further academic research about World Currency Baskets and their application, and in particular the idea of a World Currency Unit.
The Institute will also independently monitor the application of the underlying Wocu Algorithm sponsored by the WDX Organisation and will dictate its revision and its constituents.
Please visit http://www.wocu.com
Editorial contact:
Alla Lapidus
Moonlight Media
Tel: +44-(0)20-7250-4770
Email: alla@moonlightmedia.co.uk
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