A Modern Consensus Network
for Independent Price Verification (IPV)
ClearConsensus is a transparent and extensible consensus network for Independent Price Verification (IPV) in the OTC derivative market. Combining Parameta Solutions’ Evidential Price (EvP) with PeerNova’s data quality and analytics platform, ClearConsensus enables market participants to optimize for risk capital allocation and reduce the total cost of ownership.
ClearConsensus is designed to address the business resilience and regulatory requirements of a consensus network. It provides market data overlay using TP ICAP’s Evidential Price (EvP), expert cohort consensus to reduce noise through data science, and a rules-based and automated challenge process to further complement the consensus results. The solution is easy-to-use and supports current integration and evolving re-platforming requirements.
High-fidelity Transparent Consensus for Better Position Justification
The consensus methodology, governance, and policies are evident to all participants. This degree of transparency helps IPV professionals gain confidence in the valuation of positions.
Richer Consensus Complemented by Evidential Price (EvP)
Parameta Solutions’ Evidential Price helps complement the consensus price outcomes as dealer outliers are directly compared against an independent, authoritative, and market-observable data source. The EvP data combines real-time indicative pricing from two leading sources with trades and orders sourced from the world’s largest over-the-counter (OTC) market intermediary.
Automated Challenge Process Further Improving Consensus Results
The automated challenge process and resolution results in the elimination of outlier false positives, thereby ensuring a more reliable consensus price that is based on accepted and submitted points. The solution provides additional post-challenge consensus reports which are then published to all participants in a timely manner.
Insightful Statistics, Time-Series Analytics, and Participant Trends
Comparative and time-series analytics and reporting help confidently guide strategy and decision-making for independent price verification. Insights can also establish historical trends and help align outcomes with goals.
Extensible and Cohort-Based Consensus
To support valuation decisions, additional consensus calculations and results are needed to increase the signal-to-noise ratio. The solution provides cohort-based consensus calculations determined by the participants’ expertise for a particular instrument and asset class.
Community-driven, Unified Experience with Rule-based Policy Governance
The solution easily integrates with existing workflows and helps unify the entire consensus, challenge, and publishing processes into coherent experiences. Policies are network-driven, with a community understanding of processes and changes that continuously improve operational workflows and consensus results.
ClearConsensus Methodology
Enriched consensus, automated challenge process, and insightful analytics
Insightful Statistics, Time-series Analytics, and Participant Trends
The solution computes both standard and observability statistics, which deliver key insights surrounding the pricing of positions. The analytics help visualize data across all three phases: submission, consensus, and challenge.
Through comparative and time-series analytics, high-quality and timely reports highlight data quality errors, outlier classifications, and EvP data. This can identify participant trends to help align and optimize business strategies, operations, controls, and policies with institutional goals.
Richness and Extensibility
The EvP complements the consensus price outcomes by incorporating observable and evident market data directly into the consensus computation. It combines real-time indicative market pricing from two leading sources, controlled and enriched by trade, order, and quote data.
Through an extensible and flexible consensus calculation method, the solution can incorporate additional authoritative sources, method changes, and market views or activities for richer and more accurate results. This ensures a more flexible consensus solution that can adapt and evolve, as business needs grow in the future.
