MARKET PRICE VALIDATION
The ICE Data MPV Service is a consensus based price validation service providing benchmarking and validation of 'non observable markets' for forward OTC swaps, options and exotic products. In addition to a monthly fee, participants are required to submit their own valuations in order to participate. More than forty of the world's leading banks, trading houses, energy companies and investment funds use the ICE Data MPV Service as an independent audit of their trading book valuations. The service is offered twice a month to participants for mid-month and end-month valuations.
The MPV service offers extensive market coverage across the energy and commodity markets. New contracts are frequently added by customer request.
Source of long-dated and difficult to value contracts
A reliable, robust source of long-dated and typically hard to value forward curve, option and swaption positions. The number of leading market entities participating in the service provides a strong validation that the consensus is a good market representation.
Web based application
A secure, easy-to-access, web-based application allows easy submission of data and returns downloads in Excel or XML format. Feedback on data quality is given by ICE Data members on the day of submission and with consensus returns. The ICE Data MPV Service uses the latest Java and Oracle technology. The service supports data submission and returns downloads by Excel and XML files. ICE Data employs a standard-based interface for XML over a HTTPS transport.
ICE Data strives to publish results as soon as possible after submissions. The consensus for some markets is published on the same day of submission and the remaining markets are published the day after.
ICE Data offers independent, external validation of internally derived market values. This can be crucial for risk management purposes to help identify positions with high value at risk.
ICE Data's experienced team of energy professionals are based in New York, Houston, London, Calgary and Singapore and work in conjunction with its parent company, IntercontinentalExchange (ICE), to ensure high quality valuations are securely returned to participant companies.
MPV results are provided solely to MPV participants and participants are limited to only receiving consensus data for contracts and contract tenors to which they have submitted data. In a given month, if there is not a quorum of at least 4 companies submitting values for a given contract or contract tenor, then no values are returned for those respective contracts or tenors. Outliers or erroneous submissions are rejected.
Participant data is received, audited, averaged and returned in a secure, encrypted web based environment to ensure complete confidentiality.
ICE Data ensures resolution of external disputes arising from disparate valuations of opaque or unobservable contract prices.
Compliance with accounting standards
Recognition of profit and loss in accordance with FASB EITF 02-03.
A consensus-based service, the ICE Data MPV Service involves participating companies by submitting their valuation to the ICE Data team. Submissions are made via a secure website to our central server on the first working day of each month. Upon submission various statistical and financial analysis are performed automatically and by ICE Data analysts. Feedback is given through "heat maps", charts and ICE contact to highlight potential problems with the data submitted.
Once the analysis is completed, consensus returns are provided for customers to download from the website. The final reports contain detailed auxiliary information to help participants realise where they have potential problems and how they compare to other participants.
ICE Data's team is available to answer questions, and provide system support and documentation.