Methodology

As the industry’s new pricing data partner, General Index gathers and collates data from the marketplace, harnessing its commodity market data technology processing capability to generate fully comparable benchmarks. Experienced market experts oversee the automated index calculation process - the General Index vision of 'methodology is code'. We are focused on producing the highest-quality data efficiently and reliably, to meet and exceed regulatory and customer requirements. 

The General Index Approach

Our industry-standard indexes provide an alternative to incumbent providers. Based on market-accepted methodologies, General Index benchmarks are fully interchangeable with existing benchmarks.

Those General Index benchmarks which are newly created are in response to evolving industry and trading dynamics. Importantly, we are cost-effective – offering replacement indexes for existing high-cost benchmarks.

Methodology framework


GX Benchmarks Ltd is authorised by the Financial Conduct Authority (Reg No 933348) to act as benchmark administrator under Article 34 of the European Benchmark Regulation.

General Index's approach taken to price assessment generation is consistent across all the markets analysed and explained in our Methodology Framework.

Technology and architecture

The General Index methodology uses code to produce commodity indexes. System structure components:

Data gathering
General Index receives data from a wide variety of sources including market participants and a variety of public and non-public sources reviewed by our pricing analysts. Data is chosen for the relevance to the specific market being assessed and can take any form. 

Validation engine
The General Index validation engine normalises, eliminates duplication and verifies data. Our analysts manage and review data submission from a variety of sources, minimising integration cost for submitters. The data is filtered and interpreted by us to ensure accurate index generation. Having the ‘GX source of truth’ enables data to be collected in raw forms minimising integration costs for data submitters. 

Trade and fundamentals data store
The trade and fundamental data store manages all data inputs to enable the pricing engine to correctly determine market price based on the approach detailed in the relevant methodology factsheet. 

Pricing engine
The General Index pricing engine is the implementation of our vision of ‘methodology is code’. Pricing algorithms are step-by-step calculations. Once the approach to assessing price has been determined by consultation with the industry, the pricing analysts develop a series of coded steps to exactly determine the price as summarised in the relevant methodology factsheet. This ensures consistent application of the methodologies adopted by the marketplace.

Index price store
General Index has developed a proprietary data format to enable subscribers to effectively integrate our index data into their workflows. The data format allows the subtleties of commodity price data to be accurately reflected whilst also enabling quick access to key prices in the underlying data. 

Data output
General Index pricing data is easy to integrate directly via sFTP, secure API or available through one of our data partners. Clients can also choose to receive email confirmations of data.