Intercontinental Exchange Benchmarking Unit Gets EU Regulator Approval

Intercontinental Exchange announced on Monday that its subsidiary, ICE Benchmark Administration Limited (IBA), has been authorized as a regulated benchmark administrator under the EU’s Benchmarks Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term. The US-based global network of exchanges and clearing houses stated that IBA was given final authorization by the UK’s Financial Conduct Authority (FCA).

Founded in 2014, IBA provides benchmark data to investors across different asset classes. In doing so, it enables users to calculate what prices they should be charging for their services.

For example, the company holds a daily auction to determine the price of gold and silver. The auction runs in rounds of thirty seconds, and at the end of each round, the imbalance between buyers and sellers is calculated. When this imbalance falls within a certain threshold, the price for gold is set for the day.

Beyond gold and silver, the company has developed a crowd-sourcing system to aid companies who want to exchange non-cleared derivatives. It also provides benchmark data for short-term bank borrowing rates and 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 and spreads.

The company’s founding was in part due to a market need for benchmark data that was aligned with current regulatory requirements. IBA’s non-cleared derivatives service, for instance, was built to fit with the margin requirements regulation set out by the Basel Committee on Banking Supervision and the International Organization of Securities Commissions in 2013.

Commenting on the FCA’s regulatory approval, Tim Bowler, IBA’s president, stated: “We are pleased that IBA has received EU regulated benchmark administrator status. IBA was founded to reform and bring transparency to global benchmarks. We aim to adopt the highest standards for the benchmarks that we administer.”