Argus completes 13th IOSCO benchmark review

Leading global energy and commodity price reporting agency Argus has successfully completed the 13th external assurance review of its energy and commodity benchmarks and other key prices.

Independent professional services company PricewaterhouseCoopers LLP (PwC) examined the policies and processes through which Argus assesses prices for crude oil, oil products, LPG, chemicals, thermal and coking coal, natural gas, biofuels, biomass, metals, fertilizers and agricultural markets.

The policies and processes reviewed by PwC were designed by Argus to comply with the Principles for Price Reporting Agencies (PRAs) set out by the International Organization of Securities Commissions (the IOSCO PRA Principles) in October 2012.

Argus Media chairman and chief executive Adrian Binks said: “Argus prices have been adopted by market participants around the world because they accurately reflect the value of the commodity and energy markets we assess. They are underpinned by transparent and publicly available methodologies, which are updated on a regular basis as markets evolve. Our robust compliance underpins the trust the markets place in Argus assessments, and this independent annual review is an important part of that ongoing process.”

Argus was the first PRA to complete an independent review of oil benchmarks, in October 2013, and was the first to extend the IOSCO PRA Principles to non-oil energy benchmarks in January 2014.

The IOSCO PRA Principles were endorsed by the G20 in November 2012, and have since been incorporated into the EU’s Benchmark Regulation, known as BMR. They cover governance, control, quality, integrity and conflict management in relation to commodity benchmark price assessments published by PRAs, and require an annual external audit.

Argus’ policies and procedures, together with the full assurance report, and its price assessment methodologies are available here.