Today, independent price verification (IPV) tools continue to lack adequate analytics to provide a clear and deep understanding of their overall methodology and consensus results. Without these analytics, market participants often struggle with how to effectively evaluate their pricing, demonstrate their controls, and align their strategies to business goals. In addition, these lack of insights into consensus pricing lowers firms’ confidence in their position justification within the market and amongst their peers.
The calculation of consensus pricing consists of three phases: submission, consensus, and challenge. Without timely, reliable, and easy-to-use analytics across these phases, it’s difficult for market participants to understand key measures. For example, why a data point is an outlier or if they are regularly overpricing their assets compared to the consensus price.
ClearConsensus™ provides comprehensive analytics capabilities that are detailed, comparative, and timely. This helps firms confidently guide their strategy and decision-making for accurate consensus pricing.
Detailed analytics enable firms to identify patterns in their submission data quickly and easily (such as where there are challengeable and non-challengeable outliers). Comparative and time-series analytics inform how a firm is approaching asset pricing compared to their peers, while also highlighting trends within the firm. The platform maintains anonymity of the participants.
As a result, these rich insights help maximize benefits of the consensus service, align internal controls, mitigate certain risks, and strategize future decision-making.
Data Quality Reports
ClearConsensus runs continuous, stringent data quality checks and validation rules to provide trusted and transparent independent price verification. At any point, participants can view detailed reports that identify the errors and reasoning for tactical corrections, as well as trends in recurring data quality challenges for operational improvement.
Consensus Reporting
The solution incorporates authoritative data sources, such as Parameta Solutions’ Evidential Price (EvP), for richer consensus calculations. Participants receive detailed and consolidated consensus reports that include consensus calculations, outlier classifications, EvP data, and challenge data. This allows firms to automatically cleanse some of their outliers and confirm that their price is within the market.
Pre-and Post-Challenge Reports
ClearConsensus provides a window for participants to challenge outliers based on business rules and policies. Participants can submit evidence in support of the challenged data point. Specific time-series analytics offer deeper insights into how a participant can more effectively respond to detect outliers in support of their business strategy.
The solution provides comprehensive analytics and reports for data quality and outlier comparisons, to help participants understand and compare their pricing positions to the markets. This enables firms to optimize capital allocation and reduce overall risk.
For more information, please visit ClearConsensus to contact us, or request a demo with a member of Parameta Solutions and PeerNova today.
