ESMA launched a consultation on regulatory technical standards under the Benchmarks Regulation. The proposed standards cover governance arrangements, methodology, reporting of infringements, mandatory administration of a critical benchmark, and non-significant benchmarks. ESMA will consider the feedback to this consultation in the second quarter of 2020. ESMA expects to publish a final report and submit the draft technical standards to EC for endorsement by October 01, 2020. The closing date for responses from stakeholders is May 09, 2020.
The outcome of the ESAs Review, Article 5 of Regulation (EU) 2019/2175, had introduced changes to the Benchmarks Regulation or BMR, including a new mandate for ESMA to develop draft regulatory technical standards to further specify certain requirements of the Benchmarks Regulation:
- Requirements to ensure that the governance arrangements of an administrator are sufficiently robust
- Conditions that ensure that the methodology an administrator uses to determine a benchmark complies with the relevant requirements in Article 12(1) of the Benchmarks Regulation
- Characteristics of the systems and controls established by an administrator to ensure the integrity of input data, to be able to identify and report to the competent authority any conduct that may involve manipulation or attempted manipulation of a benchmark
- Criteria that the competent authority applies when assessing how the benchmark is transitioned to a new administrator or ceases to be provided
- Criteria under which competent authorities may require changes to the compliance statement
Comment Due Date: May 09, 2020
Keywords: Europe, EU, Banking, Securities, Benchmarks Regulation, IBOR Reform, Critical Benchmarks, Regulatory Technical Standards, Governance, ESMA
Previous ArticleMAS Amends Legislation Due to Revised Capital Rules for Insurers
HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.
EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.
BoE has set out a three-phased plan to transform data collection from the UK financial sector over the next decade.
BIS recently made a couple of announcements with respect to the planned and ongoing work in the area of financial technology.
ESRB updated the list of national macro-prudential measures applied by each member state in the European Economic Area.
BoE has set out results of a survey on the impact of COVID-19 events on the use of machine learning and data science.
In response to a request from the European Council and Parliament, ECB published an opinion on the proposed regulation on markets in crypto-assets.
APRA announced the updated aggregate amounts for the 2021 Committed Liquidity Facility (CLF) established between the Reserve Bank of Australia (RBA) and certain locally incorporated authorized deposit-taking institutions that are subject to the Liquidity Coverage Ratio (LCR).
ECB published supervisory Memorandums of Understanding (MoUs) with UK as well as other European and non-European authorities.
EIOPA identified business model sustainability and adequate product design as the two EU-wide strategic supervisory priorities.