LONDON, Nov. 15, 2019 /PRNewswire/ -- CRU has successfully completed a formal internal and external review of its price methodologies and definitions in an annual "Underlying Market Conditions Review" (UMCR). The review is one of the company's regular price governance and compliance processes and is therefore a necessary part of our commitment to following industry best practice, enshrined in the IOSCO PRA Principles.
The UMCR involved soliciting the feedback from all CRU price service customers and reviewing this together with internal analysis of market requirements and market evolution. Resulting actions are a set of market-led recommendation for adjustments to our price portfolio, including potential additional prices where value-adding to markets, or equally removal of prices which are no longer valuable. Further, a number of suggestions were made to further develop CRU price methodologies and specifications. Formal market consultations have started as the next step in our price compliance and development work resulting from this review.
"We take responsibility to provide the best price through regular review of our methodology, IOSCO adherence, and price governance, compliance and control processes. The UMCR forms an essential part of that framework," said CRU's Compliance Lead, Claire Ballak. CRU's Head of Prices Development, Chris Houlden added, "The UMCR also helps ensure our prices, and associated price methodology and specifications, remain in line with evolving market requirements. I'd like to thank all our customers who responded to our call for feedback. This will ensure our price portfolio continues to develop in line with market requirements."
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Read more about CRU: http://bit.ly/About_CRU
CRU is an independent, privately owned, price, analysis, consulting and events business specializing in the mining, metals and fertilizer sectors. Founded in the late 1960s and headquartered in London, it has over 280 employees worldwide and has analysts and price assessors in London, Pittsburgh, Santiago, Delhi, Mumbai, Shanghai, Beijing and Sydney.
The company delivers independent market analysis and price assessment across a comprehensive range of global commodities – its reputation with customers across mining, metals and fertilizers is for integrity, reliability, independence and authority.
CRU's methodologies and definitions are subject to annual review, or more frequently if market feedback requires, as part of the UMCR process. CRU's Compliance Lead is accountable for the launching and overall operation of the formal annual review process.
IOSCO stands for the International Organization of Securities Commissions and is the international body that brings together the world's securities regulators and is recognized as the global standard setter for the securities sector. IOSCO develops, implements and promotes adherence to internationally recognized standards for securities regulation. The PRA Principles were designed by IOSCO to ensure that PRA assessments are reliable indicators of physical oil market price values such that they, and any derivatives contracts based on them, are free from distortion or manipulation. They, therefore, seek to ensure that any price referenced by an oil derivatives contract accurately reflects the transactions in the physical oil market, and that the data is bona fide.
Whilst, at present, the PRA Principles relate exclusively to oil markets, CRU considers them a means of ensuring that its assessments, are reliable indicators of physical market prices across a range of commodities. We have therefore voluntarily aligned our prices, governance, control, methodology and accountability policies and processes to the PRA Principles.