Methodology

As the industry’s new pricing data partner, GX 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 GX vision of 'methodology is code'. GX is focused on producing the highest-quality data efficiently and reliably, to meet and exceed regulatory and customer requirements. 

GX approach

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

Those GX benchmarks which are newly created are in response to evolving industry and trading dynamics. Importantly, GX is 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.

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

Technology and architecture

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

Data gathering
GX 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 GX validation engine normalises, eliminates duplication and verifies data. GX analysts manage and review data submission from a variety of sources, minimizing integration cost for submitters. The data is filtered and interpreted by GX 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 GX pricing engine is the implementation of the GX 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
GX has developed a proprietary data format to enable subscribers to effectively integrate GX 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
GX 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.