ICE Benchmark Administration

Transforming Global Benchmarks

Access to accurate, reliable information is essential to the integrity and everyday functioning of global markets and the economies which they support. Benchmarks form a vital part of this ecosystem, helping market participants to assess the value of assets and make informed business decisions with confidence.

As the world's most experienced administrator of regulated benchmarks, IBA is leading the way in benchmark reform. We are evolving benchmarks to ensure high standards of data collection, calculation, publication and surveillance. By establishing comprehensive and robust governance and oversight functions, IBA is enhancing benchmark integrity in order to give market participants confidence in the information they depend upon.

IBA also operates a crowdsourcing platform for asset risk data, used to support standardized margin calculations under the ISDA SIMM (Standard Initial Margin Model). This is underpinned by the same principles of procedural excellence and strong governance as our benchmarks.

Benchmarks We Administer

ICE LIBOR

A widely used global benchmark for short-term interest rates
ICE Swap Rate

The principal global benchmark for interest rate swaps and spreads
LBMA Gold & Silver Prices

Global benchmarks for the prices of gold and silver
ISDA SIMM Crowdsourcing Facility

A facility to aggregate and publish asset risk data for use in ISDA SIMM margin calculations

Enhancing the Methodologies of Global Benchmarks

ICE LIBOR

  • Designed a framework for evolving LIBOR through the adoption of a standardized waterfall submissions methodology. The process of transitioning panel banks to the waterfall methodology is expected to complete by no later than Q1 2019
  • Implemented purpose-built surveillance technology, operated by a dedicated team of analysts, to examine submissions and trading data
  • Developed a revised code of conduct for panel banks, setting out the framework within which they make submissions to the benchmark
  • Maintaining an oversight committee, with broad market representation, responsible for reviewing the benchmark's methodology and code of conduct

ICE Swap Rate

  • Transitioned ICE Swap Rate from a polled submission model, based on subjective price estimates, to a methodology based on real, tradable quotes from regulated trading venues, making the calculation of this important swap rate significantly more robust
  • Driving transparency in the benchmark setting process with new technology and new surveillance tools

LBMA Gold & Silver Prices

  • Moved the LBMA Gold Price away from the historical telephone-based process to an electronic, physically-settled auction using ICE's trading platform, recognized around the world for providing access and increasing market transparency
  • Provided direct participants and clients the ability to manage orders in the auction directly themselves for the first time
  • Doubled participation in the gold auction, and doubled gold and silver auction volumes, as technology and governance improvements have enhanced accessibility and confidence in the process

ISDA SIMM Crowdsourcing Facility

  • Launched a crowdsourcing facility in conjunction with ISDA for firms trading uncleared derivatives that provides consensus risk buckets as a key input to the ISDA SIMM methodology
  • Allowing market participants to reduce margin call disputes by providing firms which use the ISDA SIMM methodology with an aligned set of risk buckets

How IBA Operates

IBA combines robust regulatory and governance frameworks with advanced technology to bring credibility and trust to globally important benchmarks. IBA, which is independently capitalized, is authorised and regulated by the Financial Conduct Authority (FCA) in the UK. IBA is required to comply with the FCA’s rules for benchmark administrators and has also been formally assessed in respect of ICE LIBOR against the IOSCO Principles for Financial Benchmarks.

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