ESMA issues guidelines on non-significant benchmarks
The European Securities and Markets Authority (ESMA) has published its final report on guidelines on non-significant benchmarks under the Benchmarks Regulation (BMR).
The final report proposes lighter requirements for non-significant benchmarks, their administrators and their supervised contributors in relation to four areas:
- procedures, characteristics and positioning of oversight function;
- appropriateness and verifiability of input data;
- transparency of methodology; and
- governance and control requirements for supervised contributors.
The first three areas are applicable to administrators of non-significant benchmarks while the fourth one is directly applicable to supervised contributors to non-significant benchmarks.
The BMR introduces a regime for benchmark administrators within the European Union that ensures the accuracy and integrity of benchmarks.