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In line with the objectives envisaged in the Level 1 of the BMR, the draft standards submitted by ESMA last year aim at ensuring the accuracy, robustness and integrity of benchmarks and of the benchmark determination process. Where appropriate, ESMA has introduced proportionality, in particular for administrators of significant and non-significant benchmarks, in order to reflect the co-legislators intentions of a less detailed regime applicable to such administrators.
ESMA participation in the colleges contributes to the harmonised application of rules under this Regulation and to the convergence of supervisory practices. In this respect, on 2 June 2017 ESMA published a methodological framework to achieve supervisory convergence in the application of the provisions that set out the process of selecting potential candidates for mandatory contributions to critical benchmarks.
In relation to interest rate benchmarks, in February 2018 ESMA has set up a “risk-free rates working group”, together with the ECB, the European Commission and the Belgian FSMA. This working group is tasked with, among other things, identifying and recommending alternative risk-free rates.