Financial Benchmarks – ACT responses to IOSCO, ESMA and EBA
6 March 2013
In response to concerns regarding the perceived weaknesses in current arrangements for benchmark rate setting, the European Securities Markets Authority (ESMA) together with the European Banking Authority (EBA) have developed a set of principles to address the activities of reference-rate and other benchmark providers, administrators, publishers and market participants.
Additionally the Financial Market Benchmarks task force of the International Organization of Securities Commissions (IOSCO) has also consulted on the development of global principles on benchmark related issues.
The ACT has been supportive of the Wheatley Review of Libor in the UK and has issued responses to both consultations above. Specific comments have been provided on the role of the benchmark administrator and the potential to misinterpret the term “users” as confined to financial services firms.