TP ICAP’s Parameta Solutions Becomes FCA-Authorized Benchmark Admin

TP ICAP (LON: TCAP) announced on Wednesday that its data and analytics division, Parameta Solutions, has received the authorization of the United Kingdom’s Financial Conduct Authority (FCA) to become a benchmark administrator.

The group company highlighted that the regulatory approval has made it the first interdealer-broker to administer over-the-counter (OTC) benchmarks and indices.

“Creating possibilities for clients drives everything we do, and it became clear that there was a significant gap in the market for independent OTC benchmarks,” said Jonathan Cooper, the Chief Revenue Officer at Parameta Solutions.

“Underpinned by our wealth of data and insight, we’re now able to provide bespoke and transparent benchmarks & indices built on OTC data to support our clients so that they can accurately compare their performance against their asset allocation strategy.”

Bringing Control within the Group

At first, Parameta is going to take on the administration of the nine TP ICAP interest rate swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term benchmarks. Those benchmarks are currently being administered by Moorgate Benchmarks. All nine benchmarks track the mid-price interest rate swaps from TP ICAP’s global broking business.

Parameta Solutions, which is the tradename of ICAP Information Services Limited is going to take over the benchmark administration responsibilities on 16 May 2022.

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

Rushmi Katyal, Parameta’s Chief Governance, Risk and Controls Officer, said: “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 Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term and transparency regime we have put in place.”

Meanwhile, TP ICAP reported growth in its first quarter of 2022 revenue, which was mostly driven by the performance of Liquidnet. Parameta generated £44 million in revenue in the period, which was an increase of 5 percent.