In response to concerns regarding the perceived weaknesses in current arrangements for benchmark rate-setting, ESMA and the EBA have also developed a set of Principles to address the activities of reference-rate and other benchmark providers, administrators, publishers and market participants who submit data.
The Principles are designed as a first step towards a potential formal regulatory and supervisory framework for benchmarks to be developed in the EU and also take into account other international efforts in this field.
The proposed Principles include a general framework for benchmarks settings (calculation methodology, governance, supervision, transparency of the methodology, contingency plans, etc.). They also provide guidance to firms involved in benchmark data submissions and to benchmark administrators, calculation agents, publishers and users.
Consultation process
ESMA and EBA invite comments on all matters in this paper and in particular on the specific questions identified in the text. Comments are most helpful if they:
— respond to the question stated;
— indicate the specific question to which the comment relates;
— contain a clear rationale; and
— describe any alternatives ESMA/EBA should consider.
ESMA and EBA will consider all comments received by 15 February 2013.