What is price calculation transparency?

The calculation transparency shows exactly how every specific reported price in a CONSTI price feed came into being, no matter if it is reported live or delayed. This calculation transparency fosters trust, compliance, and informed decision-making, for a number or related topics:

Trust and Confidence

Providing price calculation transparency instills trust and confidence in all CONSTI customers as well as their own clients. When you have a clear understanding of the price data associated with financial products and services, you are more likely to trust the data and feel confident in their upcoming financial decisions.

Outlier Management

Customers having access to the crypto price calculation transparency see all price signals which led to the creation of such a price, including prices which were disregarded by the outlier detection (these will be excluded and marked as outlier).

Forex Conversion

When price are converted from one currency to another, the price calculation transparency will exactly show which currency conversion rates were applied. In such a case, CONSTI is relying on bank-grade forex conversion rates for compliance reasons. In contrast to most of its competitors, CONSTI is not using forex conversion rates from any crypto data provider or crypto exchange.

Immutable Checksums

All price signals from all connected markets of all the exchanges will form the final price for a given asset. That's why is is important to see if certain trades were possibly not included in the calculation. Every price, its full calculation transparency, and the applied methodology are then be baked into the immutable checksum which is delivered alongside with every price delivery. This means you can guarantee how exactly a price came into being and that nobody altered the information.

Compliance with Regulations

Financial institutions are subject to strict regulatory requirements that mandate transparency in pricing. Adhering to these regulations not only provides compliance assurance but also demonstrates the financial institutions' commitment to ethical and fair practices. Optionally, an independent external auditor will be able to verify any delivered price online (and the access will not time out).

Mitigation of Legal and Reputational Risks

Lack of transparency in pricing can expose a financial institution to legal and reputational risks. Transparent pricing practices help mitigate the risk of legal challenges or negative publicity, protecting the financial institutions' reputation in the eyes of clients and the broader financial community.

Informed Decision-Making

Calculation transparency empowers clients to make informed financial decisions. When clients have access to clear and comprehensive pricing information, they can evaluate the costs associated with different products or services, enabling them to make decisions aligned with their financial goals.

Fair Treatment of Customers

Transparent pricing contributes to fair treatment of customers. It ensures that clients are aware of all fees, charges, and associated costs, preventing any surprises or misunderstandings. This fairness is essential for maintaining positive relationships with clients.

Competitive Advantage

Banks, asset managers, and related companies that prioritize full price transparency gain a competitive advantage. Clients are more likely to choose a provider that provides clear and transparent pricing over those that are less forthcoming with information. This transparency can be a differentiator in a competitive financial market.

Risk Management

Transparent pricing facilitates better risk management for both the financial institution and its clients. By clearly communicating the costs and risks associated with financial products, banks can help clients understand and manage their own financial risks effectively.

Enhanced Financial Literacy

Calculation transparency of prices contribute to improved financial literacy among clients. When you understand the breakdown of pricing components, you become more financially literate and capable of making sound financial decisions, leading to more educated decisions.

Calculation transparency in dealing with financial data is fundamental for building trust, ensuring compliance with regulations, mitigating risks, and empowering clients to make informed financial decisions. It is a key element of ethical and responsible practices when dealing with crypto-assets.

More details: The calculation transparency feature of the professional crypto price feeds.