VPI Methodology
How the Vesper Price Index is created
Transaction data collected from verified market participants, validated, and published the same week. A methodology built to meet EU Benchmark Regulation standards.
How a VPI benchmark is created
4-step process, every benchmark
Data collection
Verified market participants
Quality control
Validation & outlier detection
Calculation
Manipulation-resistant method
Publication
Same-week, every benchmark
Independent price discovery
Vesper is not a market participant. We collect from all sides of the market, so no single participant can influence the benchmark.
Designed for BMR standards
VPI methodology was developed to meet EU Benchmark Regulation standards. One methodology across all products, with two grades depending on use case.
Same-week publication
Traditional benchmarks publish weeks after collection. VPI is published the same week, so you're working with current market conditions.
Audited and documented
Multiple analysts review each benchmark before publication. An independent compliance function audits the process annually.
Steps 1 & 2
Collected from every side of the market, then validated
Vesper collects transaction prices from buyers, sellers, traders, and brokers who sign a Code of Conduct requiring genuine transactions. Inputs are validated against required specifications, currencies standardized, and statistical outliers flagged and excluded from the calculation.
View full methodologySteps 3 & 4
Manipulation-resistant calculation, published the same week
Validated inputs are processed using a methodology designed to meet EU Benchmark Regulation standards, so no single participant can influence the result. VPI benchmarks are published the same week as collection, so you're working with current market conditions, not where the market was weeks ago.
Explore the VPITwo grades, one standard
Same methodology, two regulatory tiers
Both grades are built on the same methodology, designed to meet BMR standards. The difference is in administration and regulatory oversight.
For use in regulated financial instruments and contracts requiring regulatory-grade benchmarks.
Currently available: EU Butter, EU SMP
For operational procurement decisions. Same methodology and data standards, not subject to BMR regulatory reporting.
Currently available: All other VPI series
| Financial-grade | Commercial-grade | |
|---|---|---|
| Methodology | VPI standard | VPI standard |
| Data collection | Buyers, sellers, traders, brokers | Buyers, sellers, traders, brokers |
| Same-week publication | Yes | Yes |
| Quality control & outlier detection | Yes | Yes |
| Manipulation-resistant calculation | Yes | Yes |
| Independent administration | Compass Financial Technologies | Vesper |
| When inputs are limited | Previous price carried forward | Expert judgment or no publication |
| BMR regulated | Yes | No |
FAQ
Frequently Asked Questions
What's the difference between financial-grade and commercial-grade VPI benchmarks?
Both use the same methodology and data collection standards. Financial-grade benchmarks (EU Butter, EU SMP) are administered by Compass Financial Technologies under EU Benchmark Regulation oversight and are required for use in regulated financial instruments. Commercial-grade benchmarks apply the same methodology for operational procurement decisions, without regulatory reporting requirements.
How often are VPI benchmarks published?
VPI benchmarks are published on different schedules depending on market activity and needs. Some publish intraday or daily, others weekly. In all cases, publication happens the same period as data collection, so you are always working with prices that reflect current market conditions.
Who administers VPI benchmarks?
Vesper administers commercial-grade VPI benchmarks. Financial-grade benchmarks are independently administered by Compass Financial Technologies, an authorized benchmark administrator under EU Benchmark Regulation.
What happens when there isn't enough market data?
For financial-grade benchmarks, the previous price is carried forward to preserve continuity for instruments that reference them. For commercial-grade benchmarks, Vesper may rely on expert judgment within disclosed rules, or choose not to publish that day. All decisions are documented.
Is the VPI methodology audited?
Yes. Multiple analysts review each benchmark before publication. An independent compliance function audits the process annually. All inputs and calculations are retained for seven years. Financial-grade benchmarks are additionally subject to BMR audits via the administrator.
Does Vesper only publish VPI benchmarks?
No. Vesper also surfaces public quotations, exchange data, and partner price feeds alongside the VPI. The VPI is one source of pricing among many on the platform, used where established benchmarks do not exist or fail to reflect the market accurately.
What are the Euronext dairy futures?
Euronext selected the VPI as the underlying index for their new EU dairy futures contracts launching in 2026, including EU Butter and EU SMP. It is third-party validation of the VPI methodology for financial-grade use.
What if I think a VPI benchmark price is wrong?
The VPI does not intend to publish the lowest or highest price in the market. Vesper is an independent benchmark facilitator that uses input from verified market participants to create benchmarks. Using our statistical methodology, we arrive at a market-representative benchmark. Individual deals can be higher or lower than the VPI value, especially in volatile markets. If you have questions or concerns about a specific benchmark price, contact us at support@vespertool.com.