The European Securities and Markets Authority (ESMA) has
published its Final Report containing the draft regulatory and
implementing technical standards (RTS/ITS) under the Benchmarks Regulation
These contain the detailed rules to implement the new European
regulatory framework aimed at ensuring the accuracy and integrity of benchmarks
across the European Union.
How are Benchmark Rules being tightened?
draft RTS/ITS set out the behaviours and standards expected of administrators
and contributors, and will ensure that financial benchmarks are produced in a
transparent and reliable manner. The draft standards include provisions
- the full process
of provision of a benchmark is checked by a new oversight function that
administrators have to establish;
- the potential
manipulation of benchmarks is minimised, through new rules regarding the
methodology of calculation and the contribution of input data;
- that conflicts of
interest of administrators and contributors are properly managed; and
- a level playing
field across different Member States for the authorisation and
registration of benchmark’s administrators.
Steven Maijoor, ESMA Chair, said:
“The Benchmarks Regulation will ensure the accuracy, robustness
and integrity of benchmarks and the benchmark setting process by clarifying the
behaviours and standards expected of administrators and contributors.
“These requirements will ensure that benchmarks are produced in
a transparent and reliable manner and so contribute to well-functioning and
stable markets, and investor protection.
“The draft standards published today establish a common
regulatory framework under which benchmarks are provided, produced and used,
which will help to restore trust both in benchmarks and financial markets.”