Following the implementation of the EU Benchmarks Regulation (BMR) in January this year, the European Securities and Markets Authority (ESMA) has published a register of EU-based benchmark Administrators that have been authorized or registered under the Regulation. ESMA also includes a list of benchmarks from third-party jurisdictions that comply with relevant conditions laid down in BMR and have therefore acquired recognition under the Regulation. The register draws on data provided by the national competent authorities of member states to provide benchmark Users an at-a-glance overview of benchmarks that are approved for use in financial contracts and instruments.
BMR has brought into force a more stringent regime for the regulation of benchmarks in the EU. The aim of the regulation is to crack down on rate rigging and market manipulation in order to build confidence in the EU’s financial markets. Benchmark Administrators now have to seek authorization (typically for administrators of ‘Critical’ or ‘Significant’ benchmarks, commodity benchmarks or interest rate benchmarks) or registration (typically for ‘supervised entities’ such as banks, credit institutions, investment firms, UCITS, management companies, AIFMs, etc.) for their benchmarks to continue to be used in the region.
Until now, ESMA has published updates to the register on its website and made it available as a downloadable file. As of this month, however, ESMA has made the public register interface available on its Registers Portal, which offers machine-to-machine services to firms. ESMA’s Registers Portal enables queries that can be used to retrieve public data maintained in its registers’ repositories. The move will make it easier for firms to search for approved benchmarks; allowing them to better monitor the fast-changing benchmarks landscape, remain compliant, and make any changes necessary to ensure the smooth running of their businesses.
In addition to the tools provided by ESMA, the wider market is helping firms stay on top of the benchmarks challenge through specialist compliance solutions. RIMES, for example, offers RegFocus℠ BMR Control, an award-winning benchmark inventory management, enrichment and control platform. The service brings together a feature-rich inventory management system for Users to gain an immediate understanding of the benchmarks universe, and helps organizations understand whether they are Administrators, Contributors or Users under BMR.
Contact us to receive more information about RegFocus® BMR, the most advanced benchmarks validation solution on the market which solves all regulatory obligations under the new Benchmarks Regulation.
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