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Fastmarkets, a leading international price reporting agency (PRA) providing pricing data, analysis and events to the global cross-commodity markets, has successfully completed another external assurance review of its key metals and agricultural prices.
BDO was appointed and carried out an independent assurance review and found that, as of June 30, 2023, Fastmarkets’ policies, processes and control activities as specified in Fastmarkets’ responses were in line with the Principles for Oil PRAs set out by the International Organization of Securities Commissions (IOSCO) in 2012. The IOSCO principles create an overarching framework for benchmarks, articulating guidance and principles ensuring transparency and openness. The assurance review process examines a firm’s governance and controls framework, policies and methodologies in scope to verify their adherence to the PRA Principles.
As stated by the European Securities and Markets Authority (ESMA), this external assurance review is sufficient to demonstrate compliance with the audit requirements of the EU Benchmark Regulation (BMR) for commodity benchmarks (paragraph 18 of Annex II).
The price assessments reviewed include some administered by Fastmarkets Benchmark Administration Oy (FBA Oy), which was incorporated in Finland in December 2020 to administer all of Fastmarkets’ benchmarks that are in the scope of the BMR.
This year’s review included five new prices, which received the Type 1 IOSCO accreditation:
“The quality of our methodologies, effectiveness of our pricing processes and integrity of our assessors guide our purpose: to publish reliable and trusted prices that the industry can rely on to trade today and plan for tomorrow,” Fastmarkets CEO Raju Daswani said. “This assurance review supports our commitment to be transparent and accountable.”
To obtain a copy of the independent assurance reports and to view Fastmarkets’ price methodology/specifications, click here.