IHS to help Nordea reach EU Benchmarks Regulation compliance

Nordea Bank has selected IHS Markit to help it comply with the European Union Benchmarks Regulation.

IHS Markit, a provider of critical information, analytics and solutions, has announced that it has been appointed as the independent benchmark administrator for Danish bond indices from Nordea.

The Nordic bank said it will use IHS Markit Index Administration Services for its benchmark calculations, methodologies, periodic auditing and data distribution on indices referencing Danish government and mortgage bonds.

In Europe, index benchmark providers must adhere to new registration and data management requirements under the European Union Benchmarks Regulation, which went into effect in January 2018.

“Nordea Bank is highly-regarded for the breadth and quality of its indices, which are extensively used by global investors to gain exposure to Nordic markets,” said Mark Schaedel, managing director, Index Services at IHS Markit. “We believe that independent administration is a best practice and will become industry convention. Our independent solution combines regulatory compliance with deep multi-asset class expertise to support the diverse needs of our clients.”

The Benchmarks Regulation aims to improve governance and controls over the benchmark process, in particular to ensure that administrators avoid conflicts of interest, or at least manage them adequately.

It also aims to improve the quality of input data and methodologies used by benchmark administrators, ensure that contributors to benchmarks and the data they provide are subject to adequate controls, and protect consumers and investors through greater transparency and adequate rights of redress.

To help firms comply with the requirements set out in the regulation, IHS Markit Index Administration Services provides objective calculations and independent support for the design, maintenance and distribution of indices referencing fixed income assets, currencies, equities and commodities.

Headquartered in London, IHS Markit has more than 50,000 business and government customers, including 80 percent of the Fortune Global 500 and the world’s leading financial institutions.

Partners Group, the €62bn global private markets investment manager, recently selected IHS Markit’s thinkFolio as its cross-asset order management and portfolio modelling system. FeedStock also recently partnered with IHS Markit to deliver integrated MiFID II investment research analytics, evaluation, payments and inducement management solutions. While in January, Cambridge Blockchain combined its distributed digital identity system with IHS Markit’s Know-your-customer (KYC) services.

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