TP Icap’s Parameta Gets Benchmark Authority Nod

TP Icap’s data business, Parameta Solutions, has received authorisation from the UK’s Financial Conduct Authority (FCA) to become an authorised benchmark administrator and will take over administration of TP Icap benchmarks, laying foundations, it says, for future benchmark creation.

The firm says the move makes it the first interdealer-broker to administer OTC benchmarks and indices. Parameta Solutions will also take on administration of the nine TP Icap interest rate swaps benchmarks that were previously administered by Moorgate Benchmarks.

The nine benchmarks, which all cover the mid-price interest rate swaps from the firm’s Global Broking business, increases transparency for market participants for whom data-driven insight is crucial, especially for risk and compliance purposes, the firm says. In particular, it adds, visibility into the level of the implied mid-price in the relevant underlying swap rate is key for clients as they adopt these benchmarks.

“It became clear that there was a significant gap in the market for independent OTC benchmarks,” says Jonathan Cooper, chief revenue officer at Parameta Solutions. “Underpinned by our wealth of data and insight, we’re now able to provide bespoke and transparent benchmarks and indices built on OTC data to support our clients so that they can accurately compare their performance against their asset allocation strategy.

“Looking ahead, building out our benchmarks and indices offering is a core priority for us, with a particular focus on the ESG and rates space,” he adds.

Rushmi Katyal, chief governance, risk and controls officer at Parameta Solutions adds, “Our clients have highlighted that access to Parameta Solutions’ benchmarks will enable greater innovation and better management of risk. That is why we have designed a governance, risk and control framework that will ensure our clients benefit from the compliance and transparency regime we have put in place.”

Icap Information Services Limited trading as Parameta Solutions will take on all administrative responsibilities for the benchmarks previously administered by Moorgate from 16 May 2022. Parameta Solutions says it also complies with the IOSCO Principles for Financial Benchmarks.