Benchmarks Regulation: ESMA publishes final draft technical standards

ESMA has published its final report containing the draft regulatory and implementing technical standards (RTS/ITS) under the Benchmarks Regulation. These contain the detailed rules to implement the new European regulatory framework intended to ensure the accuracy and integrity of benchmarks across the European Union.

The draft RTS/ITS set out the behaviours and standards expected of benchmark administrators and contributors, and include provisions to ensure that:

• the full process of provision of a benchmark is checked by a new oversight function that administrators have to establish;
• the potential manipulation of benchmarks is minimised, through new rules regarding the methodology of calculation and the contribution of input data;
• conflicts of interest of administrators and contributors are properly managed; and
• there is a level playing field across different Member States for the authorisation and registration of benchmark administrators.

ESMA has submitted the final draft technical standards to the EU Commission, which now has three months in which to approve or reject them. The Benchmarks Regulation will apply from 1 January 2018.