Solving the needs of Benchmark Users under the new EU Benchmarks Regulatory Regime
RIMES RegFocus℠ BMR Control is the most advanced benchmarks validation solution on the market, solving the regulatory obligations of ‘Users’ under the new Benchmarks Regulation (BMR).
“Regulation (eu) 2016/1011 of the European parliament and of the council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014” will be applicable from January 1, 2018. Its goal is to:
- improve governance and controls over the benchmark process
- improve the quality of input data and publish methodologies used by benchmark administrators
- ensure that contributors to benchmarks and the data they provide are subject to adequate controls
- protect consumers and investors through greater transparency and adequate rights of redress.
Under the EU Benchmarks Regulation (BMR), Benchmark Users must answer three critical questions:
- Does this index constitute a benchmark under BMR?
- Can I use this benchmark in the EU?
- If this benchmark is withdrawn, do I have ready access to a substitute benchmark?
To answer these key questions, you must first inventory the benchmarks used at your firm.
RIMES RegFocus℠ BMR Control is the world’s first benchmark inventory management, enrichment and control platform, built to help buy-side firms overcome the challenges of BMR. This new cloud service from RIMES further benefits buy-side firms through its advanced benchmark substitute capability, which sources alternative benchmarks from RIMES’ library of more than 1.1M indices.
Why use RIMES RegFocus℠ BMR Control?
- Benefit from unique inventory management technology
- Mitigate regulatory risk stemming from the new BMR regime
- Draw on the largest inventory of substitute benchmarks on the market
- Accelerate compliance with cloud-based delivery
- Enjoy the most advanced GUI on the market including workflow, alert management, dashboard, audit trail and highly-searchable inventory.
RIMES Benchmark Inventory Management
- Our proprietary framework provides Users with an immediate and multidimensional view of the entire universe of indices and benchmarks used at their firm.
- The system classifies each benchmark according to key attributes such as use, source, type and family; before alerting the firm to its current level of risk exposure under BMR.
- Additionally, with RIMES RegFocus℠ BMR Control customers can specify the type of view they receive according to the criteria that matters most to their business (such as risk level, blend, custom, internal source or type of use).
Benchmark Inventory Enrichment
- Using the most advanced workflow, RegFocus BMR Control allows users to enrich key attributes of one or a set of benchmarks, such as use, source, AUM and system, by adding data.
- Several types of Users access part of the workflow to complete their enrichment task.
- A full audit trail allows task control and time for enrichment.
- Time manager creates alerts for enrichment.
Right to Use of Benchmark
- RIMES RegFocus BMR Control ensures that every benchmark used by customers is properly registered and administered under the new regime, giving firms peace of mind that the benchmarks they use are fully compliant.
- Delivers customers a certificate of “Right of use” for each benchmark, helping ensure a clear audit trail for compliance.
- To enable the service, RIMES maintains a comprehensive central repository of benchmarks from all administrators registered under BMR, using data from ESMA and all other National Competent Authorities in the EU.
RegFocus BMR Compliance Control
- Drawing on advanced data analytics, RegFocus BMR Control identifies potential risk exposures around BMR compliance and alerts Users. Risk exposures include:
- Use of a non-EU administered benchmark
- Use of benchmark without a having a substitute ready
- Wrong declaration of use of benchmark according to the system it connects to
- Suspicious data profiles.
- Following an alert, firms can then use the workflow to investigate the alert and further enrich their inventory.
- Using RIMES correlation technology, RegFocus BMR Control enriches customers’ inventories with a list of appropriate equivalent benchmark for ALL authorized benchmarks.
- Each substitute selection is made according to specific parameters such as correlation, time, type, frequency, etc.
- Users can select the substitute benchmark and decide on a specific date for the substitution to take place.
- The selection of a substitute benchmarks draws on RIMES inventory of more than 1.1M benchmarks.
Advanced Front End
- RegFocus BMR Control is a cloud service providing the most advanced technology available.
- All inventory and certificates are made available through a simple-to-use online portal.
- Integrated reporting tools and full investigation workflow make BMR compliance simple.
- Compliance officers benefit from an advanced and highly-configurable dashboard.
The RIMES RegFocus℠ platform comprises fully hosted cloud services. The platform offers a highly-scalable solution that demands only the bare minimum of data connectivity to function. The system enables the ingestion of data from any source, while removing the need for expensive data storage or warehousing capabilities. RIMES hosts all RegFocus applications, such as RegFocus BMR and RegFocus Market Surveillance, and works to ensure customers can meet all relevant regulatory record keeping obligations. The front-end is fully customizable and can seamlessly interact with the internal workflows of customers with absolutely no operational disruption.
RIMES RegFocus℠ BMR Control: The award-winning solution that solves the regulatory obligations of the new Benchmarks Regulation. Download our brochure to discover an effective alternative to a costly in-house project or simply arrange a demo.