ICE Benchmark Administration (IBA) is an independent subsidiary of Intercontinental Exchange, responsible for the end-to-end administration of benchmarks.
As the world's most experienced administrator for regulated and IOSCO-compliant benchmarks, IBA administers the following three systemically important benchmarks:
- ICE LIBOR — the world's most widely used benchmark for short term bank borrowing rates
- LBMA Gold Price — the principal global benchmark for daily gold prices
- ICE Swap Rate (formerly known as ISDAFIX) — the global interest rate swap benchmark for swap rates and spreads
IBA combines robust regulatory and governance frameworks with enhanced technology to bring credibility and trust to globally important benchmarks. This includes being separately capitalized from the parent company, a board of directors comprised of independent non-executive directors, an oversight committee, sophisticated surveillance techniques and purpose-built technology.
Fully authorised and regulated by the Financial Conduct Authority (FCA), IBA is independently capitalized and required to comply with the FCA’s rules for benchmark administrators, as set out in MAR 8.3 Regulation. IBA has been formally assessed against the IOSCO Principles for Financial Benchmarks.
IBA is enhancing the governance and methodologies of benchmarks through:
- New benchmark surveillance technology and techniques to improve transparency and confidence in the benchmark price setting process
- Establishing Oversight Committees for each benchmark which includes representation from the market, industry bodies, benchmark contributors and infrastructure providers. The LIBOR Oversight Committee also includes as Observers the Federal Reserve, the Swiss National Bank and the Bank of England
- New technology for the collection of ICE LIBOR submissions which includes real-time validation checks which reduces operational risk
- Transitioning the calculation of ICE Swap Rate from a polled submission model where contributing banks submit price estimates, to a methodology based on tradable quotes from regulated trading venues - with no subjective or expert judgement involved
- Moving the LBMA Gold Price from a telephone-based process to an electronic, physically settled and tradable auction with increased participation. Using ICE’s trading technology – WebICE – all participants can see the same price and aggregate volumes on-screen, in real-time on a level playing field. Direct participants and sponsored clients can manage orders in the auction directly from their desktops