Parameta Solutions secures ESMA approval to offer benchmark services
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Parameta Solutions has gained approval from the European Securities and Markets Authority (ESMA) to offer benchmark services. The approval will enable Parameta Solutions to offer over-the-counter benchmarks and indices in Europe and the United Kingdom.
Parameta Solution gains ESMA approval
Parameta Solutions is the data and analytics division of TP ICAP. The approval by ESMA will see the firm becoming the first date provider to offer benchmarks and indices to customers across Britain and Europe.
Parameta Solutions is a platform that TP ICAP unveiled in April 2021. The platform gives traders insights into market information, such as price discovery and risk management. It also provides post-trade analytics to clients to assist them in managing their regulatory and counterparty risks.
One year after the platform was launched in May last year, the UK financial market regulator, the Financial Conduct Authority (FCA), gave Parameta Solutions the green light to be a UK benchmark administrator.
However, the operations of the company were affected by Brexit. ESMA urged all the UK benchmark administrators to apply for regulatory approval by the end of this year to continue operating in the European Union Economic Area. This approval has now been granted to Parameta Solutions.
TP ICAP commented on this approval, saying that the dual authorization granted to Parameta meant that the division had secured solid governance standards. These standards will enable the platform to continue offering support and create benchmarks that clients in the UK and Europe will use.
The Chief Governance, Risk and Controls Officer at Parameta, Rushmi Katyal, commented in this approval that it would enable the company to offer the best governance standards within the EU. He added that the company worked alongside regulators to create a consistent foundation that supported compliance. As such, clients would have peace of mind when using the benchmarks offered by the company.
“Post Brexit, clients are increasingly looking to benchmarks to enhance their risk management processes. By being approved early in the benchmark transition period, our clients can rest assured that we are fully compliant and transparent,” said the Head of the Benchmark and Indices Product Team, Anand Venkataraman.
TP ICAP is focused on business growth
TP ICAP is a platform that links buyers and sellers in the global financial markets. Those who use the platform benefit from market volatility and other policies in the macroeconomic environment.
TP ICAP is listed on the London Stock Exchange, and the company has been profitable since its listing. In 2021, the company reported pre-tax profits of £24 million, while the amount increased to £113 million in 2022. Last year, the company reported a 13.5% revenue growth to £2.1 billion.
In February this year, TP ICAP made a bold venture into the blockchain space through a partnership with Chainlink Labs. The partnership sought to enable TP ICAP to offer institutional-level forex pricing data to the blockchain industry. Towards the end of last year, TP ICAP secured registration in the UK.
