Institutions should define how a reference-price service will be used before establishing its processes. According to ChainCatcher, requirements differ depending on whether prices are displayed to clients, used for internal research or valuation support, or incorporated into executable quotes.
The process should identify the specific product version, including its issuer, structure, trading venue, quote currency, price type, and data timestamp. Trading activity and market depth provide context but do not replace an institution’s own product and data-licensing assessments.
Records should distinguish data, retrieval, and calculation times, as well as the applicable time window. Institutions should also document data sources, fields, calculation methods, and how anomalies are handled.
Procedures should cover unavailable sources, changes to product terms, abnormal quotes, and missing data, with review and escalation mechanisms. Significant changes should trigger a methodology review rather than relying solely on a fixed annual review.