PricewaterhouseCoopers LLP (PwC) has concluded two independent assurance engagements on the suitability of the design and operating effectiveness of controls relating to container box and ocean bulk index administration at Baltic Exchange Information Services Limited (BEISL).
The audit, which is the fourth annual cycle between PwC and BEISL, is commissioned by BEISL to ensure the way it assesses dry bulk and container markets is robust and complies with the various national and international regulations, guidelines and principles it is required to adhere to.
The in-depth reports also include a reasonable assurance opinion by PwC over the design and operating effectiveness of BEISL’s controls for its market benchmark services, including data collection, systems and processes, calculations and publishing.
The opinions provided by PwC were issued over the Baltic Exchange’s controls for the 12-month period to 31 December 2023 in relation to the requirements set down within the UK Benchmarks Regulation, the IOSCO Principles for Financial Benchmarks, the IOSCO Principles for Oil Price Reporting Agencies as well the Baltic’s own Guide to Market Benchmarks and Guide to Freightos Baltic Global Container Index.
In both reports, PwC noted in their opinion that all of the control objectives were achieved throughout the period.
“BEISL provided reliable assessments for our users throughout 2023 amid continued market turbulence and global uncertainty. This latest set of reports from PwC once again provides confidence to users that BEISL’s index business is audited, transparent and completely independent. We remain fully committed to investing in our industry leading information services,” said Mark Jackson, Chief Executive Officer of Baltic Exchange Limited.
“The quality and validity of our data, which is used to settle physical and futures contracts, is a key foundation of our offering to our users. BEISL was an early adopter of the UK Benchmarks Regulation and we continue to maintain our high standards by ensuring our benchmarks are administered in accordance with industry requirements and best practice through our work with PwC," said Matthew Cox, Head of Benchmark Production at Baltic Exchange.
“BEISL believes an independent assessment from a respected and widely recognised audit firm is in the best interests of our various stakeholders, clients and the valued users of our indices,” he added.
