The Benchmarks workstream was tasked with steering the IRSG's response to the European Commission's proposed Regulation on Benchmarks.
The IRSG broadly welcomes the aims of the proposed regulation to ensure that benchmarks are robust and reliable in order to restore confidence in financial markets, in particular the need to ensure high standards of effective governance, methodology and transparency. However, the role of of benchmarks in helping to enable investment and growth should be recognised, as well as the fact that benchmarks are global and therefore EU rules in this area must be fully compliant with IOSCO principles to ensure a level playing field globally.
Our work focuses on the following 3 areas:
- Third country benchmarks
More details on the IRSG position can be found in the IRSG's position paper:
Following the discovery that key benchmarks such as LIBOR and EURIBOR had been manipulated, the European Commission published a proposal to regulate benchmarks and indices in September 2013. The proposal aims to improve the governance and controls governing the benchmark process, and to improve the quality of data and methodologies used to calculate benchmarks.