ESMA consults on implementation of the Benchmarks Regulation

15 February 2016

ESMA published a Discussion Paper regarding the technical implementation of the incoming Benchmarks Regulation. ESMA is seeking stakeholder input to inform its future proposals on draft RTS and Technical Advice to the European Commission.

The BR’s objective is to improve the governance and control over the benchmark process, thereby ensuring their reliability and protecting users. The changes aim to:

• improve the quality of the input data and methodologies used by benchmark administrators;
• ensure that benchmark contributors provide adequate data and are subject to proper controls; and
• ensure the supervision and viability of critical benchmarks.

Steven Maijoor, ESMA Chair, said: “The Benchmark Regulation, once implemented, 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. ESMA, in preparing for its work on regulatory technical standards and technical advice, is keen to ensure that all affected stakeholders have their views heard on this important topic and we hope that all interested parties will take this opportunity to contribute.”

The DP is seeking stakeholder’s feedback in the following areas:

• definition of benchmarks;
• requirements for the benchmark oversight function;
• requirements for the benchmark input data;
• governance and control requirements for supervised benchmark contributors;
• authorisation and registration of an administrator; and
• transparency requirements regarding the benchmark methodology.

Next steps

ESMA will use the responses to its DP to develop detailed implementing measures on which it will publish a follow-up consultation in Q3 2016.

ESMA will consider all comments received by 31 March 2016.

Full discussion paper

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