ESMA Consults on Regulatory Standards Under Benchmarks Regulation
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
Related Links
Comment Due Date: May 09, 2020
Keywords: Europe, EU, Banking, Securities, Benchmarks Regulation, IBOR Reform, Critical Benchmarks, Regulatory Technical Standards, Governance, ESMA
Previous Article
MAS Amends Legislation Due to Revised Capital Rules for InsurersRelated Articles
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.