Benchmark & Index solutions

Parameta Solutions’ indices provide transparent daily measures of market‑observable pricing, including swap rates, breakeven inflation swap returns, interest rate swap volatility, and global LNG basis differentials. They are built using independent, tick‑level indicative data from ICAP desks across multiple asset classes. 

These indices are designed to measure market pricing and interest rate movements across various financial instruments, primarily focused on: 

• Interest Rate Derivatives Pricing 
• Interest Rate Swaps (IRS) and Overnight Index Swaps (OIS) across multiple currencies. 
• Generated through proprietary pricing systems that integrate live market data and broking activity 

They support a wide range of use cases including valuation, derivative settlement, benchmark construction, risk management, quant strategies, asset–liability management, and hedging. 

• Interest rate derivatives and swaps: Indices can support the valuation and settlement of interest rate swaps and other OTC derivatives by providing consistent daily reference levels derived from observable market pricing. 
• Swaption markets: Interest Rate Swap Volatility (IRSV) indices can be used by market participants involved in swaption markets to support model calibration, volatility surface construction, and product valuation. By offering an independent and model-free measure of spot implied volatility derived from traded OTC swaption pricing, these indices help structure and risk-manage volatility-linked derivatives and interest rate options strategies. 
• Inflation-linked derivatives: Breakeven Inflation Swap Indices can be used as reference indices in inflation-linked OTC transactions and structured products. They support pricing, valuation, and risk management of inflation swaps and inflation-linked derivatives by delivering transparent measures of market-implied inflation expectations across key tenors. 
• Risk Management: Managing interest rate risk in the evolving regulatory landscape 
• Regulatory Compliance: Meeting reporting obligations with current reference rates 
• Price Discovery: Enabling fairer and more efficient pricing processes 
• Portfolio Management: Assessing risk-adjusted returns for better diversification 
• Accurate Pricing: Daily assessment of implied rates for various asset classes 

The data serves banks, insurance companies, investment firms, exchanges, hedge funds, broker/dealers, and risk managers by delivering reliable insights into current market conditions.

Swap Rate Indices are primarily used by financial institutions to support the structuring and issuance of interest rate–linked structured products, including exotic options and structured notes. By providing transparent and independently derived swap rate fixings across multiple tenors, they help issuers define reliable underlying reference levels for product payoff calculations. 

They can also be used as reference indices in bilateral OTC derivative transactions, supporting valuation, lifecycle event management, and settlement processes where a consistent and observable interest rate inputs are required. 

• Administered indices are established reference rates calculated and governed by Parameta under robust regulatory and governance frameworks. These are designed to serve as trusted benchmarks used widely across markets.
• Custom solutions are bespoke indices created in collaboration with clients, tailored to specific investment objectives, structuring needs, or risk use cases. Parameta manages the full lifecycle—from design and methodology to calculation, administration, and distribution.

Parameta’s indices are powered by multiple data sources integrated through proprietary systems: 

• Proprietary Internal Pricing Systems
  • Integrates live market data and broking activity from ICAP and Tullett Prebon desks 
  • Delivers models in market-standard format ensuring consistency, transparency, and usability 
• Voice and E-Broking Desk Activity
  • Live bid and offer data from both voice and electronic broking desks 
  • Observed orders and actual trading activity 
  • Real-time market observations from brokers 
• Global Contributing Desk Locations Extensive global coverage including:
  • Americas: New York, Toronto 
  • EMEA: London, Paris, Madrid, Copenhagen, Bahrain, Manama, Johannesburg, Dubai 
  • Asia-Pacific: Singapore, Hong Kong, Tokyo, Sydney, Bangkok, Kuala Lumpur, Manila, Jakarta, Seoul, Mumbai 
• Broker Calibration Process
  • Reviews volatility surfaces and pricing models 
  • Takes into account: 
  • Observed orders and market activity 
  • Internal consistency checks 
  • External data sources for validation 
• Quality Assurance
  • Rigorous validation processes ensure data accuracy and integrity 
  • Independent and trusted data 
  • Supported, observed, verifiable, and independent data points 
• Market Data Integration
  • Interdealer network activity 
  • Both onshore and offshore rates for regional markets 
  • Liquidity conditions across bilateral and centrally cleared markets 

All data is delivered in real-time, intraday, and end-of-day formats through various channels including cloud delivery, direct APIs, and third-party platforms like Bloomberg and LSEG. 

The indices themselves are not live tradable prices nor investment recommendations. They provide transparent benchmarks but are delivered strictly “as‑is”, with no warranties, and must not be used in ways that would classify them as regulated benchmarks without a license. 

Parameta indices can be created across a broad range of asset classes, including:

Many of Parameta’s indices are linked to OTC markets, where liquidity is fragmented and pricing is less transparent than on exchanges.

By leveraging broker‑sourced OTC data, Parameta indices reflect executable market conditions, supporting more representative benchmarking, hedging, and valuation across complex instruments.

Parameta acts as an independent, non‑bank index provider, using conflict‑free data and clearly defined methodologies.

We are authorised as a benchmark administrator by the UK Financial Conduct Authority (FCA) and recognised by the European Securities and Markets Authority (ESMA), ensuring strong governance, oversight, and methodological transparency.