Global Rate Set Systems (“GRSS”), is a leader in benchmark administration technology and services. Our business is to utilise our technology, unique IP and expertise to help Financial Market Associations, Institutional Banks, Central Banks and in some cases Regulators to produce independent and transparent benchmark data.GRSS is the official Calculating Agent for the Euribor benchmark in Europe – one of only three systemic benchmarks alongside LIBOR and TIBOR. The Calculating Agent system and its operations are fully IOSCO compliant.
GRSS Case Studies
EUROPEAN MONEY MARKET INSTITUTE (EMMI) EURIBOR is considered one of three systemically important benchmarks in the global financial markets alongside LIBOR and TIBOR. The Institute required a firm that could provide all of the technical requirements for the reliable calculation of the benchmark, but also to provide world best policies and procedures that could ensure that it met the IOSCO principles for Financial Benchmarks. Another key consideration was the ability to rapidly develop new technology to meet the new requirements post scandals affecting key benchmarks. In September 2013, Global Rate Set Systems was appointed the official Calculating Agent to EMMI, the benchmark administrator for the EURIBOR and EONIA benchmarks – replacing Thomson Reuters. GRSS uses it technology to collect submissions from authorised panel banks, and then calculates the benchmark on all EU Target days. The final benchmark values are broadcast to over 50 information vendors, exchanges and clearing houses globally. GRSS system provide a high level of disaster recovery, cyber threat protection and operational security during the calculating process.
Prior to 2014, the benchmark was free of charge to end users. GRSS assisted EMMI in converting the benchmark to a fee liable model to assist in the costs associated with the development of the benchmarks. EMMI has engaged GRSS to manage the many global subscribers to the benchmark on their behalf and also to manage vendors and exchanges that use the data as part of their businesses.
Recent work - Futures Exchange
Requirement: To replicate and then replace the exchange's debt index calculations and publications. Currently their existing system is heavily reliant of people resources and runs multiple daily excel spread sheets with complex macros.
The GRSS solution is built for purpose and removes all associated risk by automating the solution, bringing speed to market publication and error free indices to their client base.
Recent Work - Major Bank
Requirement: To produce a range of independent FX fixings, using the banks own algorithm, using live traded FX data, to create hourly fixings during the FX week.
GRSS developed a bespoke system that collects data in real time, creates the fixing and integrates a range of validation parameters to ensure that the data is accurate. Fully auditing of the system is available.
Recent Work - Major Bank
Requirement: To replicate internal benchmarks (indexes) to meet regulatory requirements
Our business analysts specified a fully independent replica system, using the same data inputs, calculation methodology and monitoring as well as the output data. The output allows direct comparison with the internal system as they operate side by side with daily verification between the system, allowing the bank to ensure its customers (and regulators) that the internal system is operated without bias.
Recent Work - Financial Market Association
Requirement: To allow the Association to have its own benchmark setting capability and for the data to be equally distributed to all major international vendors.
GRSS technology is used as the "calculating agent" to collect data from Association members and for the data to be processed. Other data sources are used to assist in data validation during the process. The Association has outsourced the "Help Desk" capability so that the process is monitored when benchmarks are created. The data is distributed to end users across the globe, via a number of distribution mediums.