Divestment and Joint Ventures - Global Rate Set Systems

Divestment and Joint Venture options

GRSS can provide a wide range of options for benchmark administrators depending on their future strategic objectives such as;

Assistance with governance, calculating agent and licensing options
Third country benchmark registration under BMR
Divestment
Joint Venture options

Divestment

In some cases, the existing benchmark administrator decides that it wishes to divest the benchmark to an independent benchmark administrator.

This can occur for the following reasons;

The association wants to focus on its primary objectives e.g. advocacy, market development
Benchmark administration as a business is too risky
Lack of adequate resources to make the benchmark meet IOSCO principles or BMR
Lack of funding to develop the benchmark

GRSS is well positioned to work with the existing benchmark administrator and local stakeholders so that benchmark can continue to operate. The team at GRSS have all of the human and technical resources to make this transition, working closely with local stakeholders so that they have an ongoing engagement in the future direction of the benchmarks.

Joint Venture

As an alternative solution to divestment, GRSS can propose a number of joint venture solutions to allow existing benchmark administrators to remain actively engaged in the business of providing the benchmark.

Under these models, a collaborative approach is taken, where there is usually a contribution of both parties of IP, technology and other assets to ensure the benchmark is capable of meeting its compliance and business requirements.

For more information on divestment or joint venture solutions, please email craig.mcivor@globalrateset.com