Benchmarksääntely

Benchmarksääntely refers to the regulatory framework governing the creation, use, and oversight of benchmarks. Benchmarks are widely used reference rates or values that serve as a basis for financial contracts, investment products, and economic indicators. Examples include interest rate benchmarks like LIBOR (though being phased out) and EURIBOR, and commodity benchmarks.

The primary goal of benchmarksääntely is to ensure the accuracy, reliability, and integrity of these benchmarks. This is crucial because financial market participants rely on benchmarks to value instruments, manage risk, and make investment decisions. A manipulated or inaccurate benchmark can have widespread and damaging consequences for the financial system.

Key aspects of benchmarksääntely typically involve:

Authorisation and supervision of benchmark administrators: Entities that produce benchmarks are often required to be authorised and supervised by regulatory authorities. This oversight ensures they have robust governance, operational capacity, and appropriate controls.

Methodology and data integrity: Regulations mandate that benchmark administrators use transparent and sound methodologies for calculating benchmarks. They must also have systems in place to ensure the quality and integrity of the data used in the calculations.

Transparency and disclosure: Administrators are usually required to disclose information about their methodologies, the data sources they use, and any potential conflicts of interest. This promotes market confidence and allows users to understand the basis of the benchmark.

Prohibition of market abuse: Benchmarksääntely often includes rules to prevent manipulation or attempted manipulation of benchmarks. This can involve sanctions for individuals or entities found to be engaging in such activities.

The development of benchmarksääntely has been significantly influenced by past benchmark scandals, such as the LIBOR manipulation scandal, which highlighted the systemic risks associated with unmanaged or poorly regulated benchmarks. In regions like the European Union, this has led to comprehensive regulations like the EU Benchmark Regulation (BMR).