Parameta Solutions, the data and analytics division of TP ICAP, has been approved by the European Securities and Markets Authority (ESMA) to provide benchmark services. With the go-ahead, Parameta Solutions has become the first data provider to administer over-the-counter benchmarks and indices across Europe and the UK, TP ICAP said in a statement.

Parameta Secures Dual Authorization

Parameta Solutions, which was launched by TP ICAP in April 2021, provides insights on price discovery and risk management to its clients. Additionally, the division offers post-trade analytics to clients to help them manage their counterparty and regulatory risks.

In May 2022, a year after the launch, the United Kingdom’s Financial Conduct Authority (FCA) authorized Parameta Solutions as a UK benchmark administrator. However, as a result of Brexit, ESMA asked all UK benchmark administrators to apply for approval by December 31, 2023, in order to operate in the European Union Economic Area.

Parameta Boasts ‘Solid Governance Standards’

Speaking about the approval by ESMA, TP ICAP noted that Parameta’s dual authorization means that the division “now has solid governance standards in place to continuously support and create benchmarks for clients across the continent.”

Rushmi Katyal, the Chief Governance, Risk and Controls Officer at Parameta, explained that the new authorization will enable the company to provide “the highest possible governance standards within the EU.”

“Working in conjunction with the regulators, we have established a consistent foundation for compliance, which will provide our clients with additional peace of mind when using our benchmarks,” Katyal added.

“Post Brexit, clients are increasingly looking to benchmarks to enhance their risk management processes,” noted Anand Venkataraman, the Head of Benchmark and Indices Product Team. “By being approved early in the benchmark transition period, our clients can rest assured that we are fully compliant and transparent,” he added.

TP ICAP Maintains Business Growth

TP ICAP connects buyers and sellers in global financial markets and benefits mainly from market volatility and other macroeconomic policies. The London Stock Exchange-listed company, which was established over five decades ago, has remained profitable despite its long presence in the industry.

The financial services group’s pre-tax profit jumped from £24 million in 2021 to £113 million in 2022. Moreover, the group reported a 13.5% increase in revenue last year as the figure came in at £2.1 billion.

Meanwhile, in February, TP ICAP partnered with Chainlink Labs, a Web3 services provider, to offer institutional-level forex pricing data to the blockchain ecosystem. Late last year, the financial services firm obtained registration in the UK to offer institutional cryptocurrency exchange services.