07 July 2016

ESMA publishes the responses to its consultation paper on technical advice on benchmarks regulation

The European Commission proposed a draft Regulation on indices used as benchmarks in financial instruments and financial contracts (Benchmarks Regulation) in September 2013 in the wake of the manipulation of various benchmarks.

On 24 November 2015, the European Parliament and the Council reached a preliminary political agreement on a compromise text of the Benchmarks Regulation, an agreement that was confirmed on 9 December 2015 by the Permanent Representatives Committee of the Council of the European Union. The European Parliament voted and approved the text of the Benchmarks Regulation in its plenary session on 28 April 2016. The Council adopted the same text on 17 May 2016. However, it should be noted that the Benchmarks Regulation has not yet been published in the Official Journal of the European Union.

On 11 February 2016 European Securities and Markets Authority (ESMA) received a request from the European Commission for technical advice on possible delegated acts. The technical advice should be delivered within four months after the entry into force of the Regulation.

ESMA published a Discussion Paper (DP) on the Benchmarks Regulation on 15 February 2016. The DP included ESMA’s policy orientations and initial proposals both for the technical advice to the Commission and the draft technical standards under the Benchmarks Regulation.

This CP is organised in five chapters, each dedicated to one of the five areas for which the Commission requested a technical advice from ESMA, namely:

• some elements of the definitions,
• measurement of the use of critical and significant benchmarks,
• criteria for the identification of critical benchmarks,
• endorsement of a benchmark / family of benchmarks provided in a third country, and
• transitional provisions.

Each chapter summarises the relevant provisions and their objectives, provides an explanation of the related policy issues and references to the relevant responses received to the DP. Each chapter includes also a draft technical advice text for which ESMA asks the public for comments.

Responses

Consultation paper

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