ECB Confirms Compliance of €STR with Financial Benchmark Principles
ECB published its statement of compliance with the IOSCO principles for financial benchmarks developed by IOSCO. The statement provides an overview of how ECB administers the euro short-term rate (€STR), presents a self-assessment of its compliance with each IOSCO Principle, and describes the relevant frameworks and procedures. The statement has been independently assured by the auditing firm PricewaterhouseCoopers in independent assurance report as at July 15, 2020.
ECB has been the administrator of €STR since it went live on October 02, 2019. ECB’s governance, quality, and accountability processes for the €STR apply the IOSCO principles—where relevant and appropriate—to ensure that an effective and transparent control framework in line with the international best practices is in place to protect the integrity and independence of the process used to determine the €STR. IOSCO had issued the principles for financial benchmarks in July 2013. As administrator of the €STR, ECB has the following tasks and responsibilities in respect of the rate:
- Definition of underlying interest which the rate represents and the methodology
- Implementation and governance of the determination process
- Publication of the rate
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Keywords: Europe, EU, Banking, Securities, Financial Benchmarks, €STR, Independent Assurance Report, Risk Free Rates, IOSCO Principles, PWC, ECB
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