The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, is thinking of changing the Benchmarks Regulation, the rules that aim to ensure the accuracy and integrity of benchmarks.
To ensure the securities industry is onboard with the changes, ESMA has launched a consultation int the matter. It is looking for input from the market until the Saturday May 9, 2020 deadline.
The consultation on draft regulatory technical standards under the Benchmarks Regulation covers governance, methodology, infringements reporting, critical benchmarks.
Proposed regulatory technical standards includes the requirements to ensure that the governance arrangements of an administrator are sufficiently robust, the conditions that ensures that the methodology an administrator uses to determine a benchmark complies with the relevant requirements in Article 12(1) of the Benchmarks Regulation, the characteristics of the systems and controls established by an administrator to ensure the integrity of input data in order to be able to identify and report to the competent authority any conduct that may involve manipulation or attempted manipulation of a benchmark, the criteria that the competent authority applies when assessing how the benchmark is transitioned to a new administrator or ceases to be provided, and the criteria under which competent authorities may require changes to the compliance statement.
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