Benchmark Services

Situation:

In 2013 the critical benchmarks, Euribor and Eonia benchmarks were calculated and published by Thomson Reuters and administered by EMMI (European Money Market Institute). The benchmark was provided to the market free of charge. EMMI was critically aware of the need to build its governance to meet IOSCO and then BMR in the future. Additional funding would be essential and also new calculating agent capability to meet their future needs to become a transaction based benchmark.

Process:

GRSS consulted with the EMMI management about licencing options and a transition to the GRSS calculating agent system. Due to the critical status of the Euribor and Eonia benchmarks, a very strict set of requirements were required for any transition.

Outcome:

In July 2014, GRSS replaced Thomson Reuters as the calculating agent for Euribor (designated a ‘Critical’ benchmark). In addition, GRSS provided the calculation agent software to EMMI for use by the European Central Bank which acts as calculating agent for Eonia. The transition was a success with no market disruption.

GRSS also manages the benchmark data licensing of Euribor/Eonia which provides the funding to EMMI for its benchmark administration role. GRSS was engaged by EMMI to implement the data licensing regime in 2014, a task GRSS completed on time and without any market disruption or customer complaints. The funding has enabled EMMI to implement the required growth in resources and technology to transition to a BMR compliant state.

Latest Update

GRSS has been calculating the benchmark for 8 years with 100% publication success and high reliability. The system and its processes are annually audited by EY.