Date-stamp loading
Version date: 9 March 2020 - onwards
    Version 1 of 1    

3.1 Background and legal basis (paras. 23-27)

Closed
8 June 2020

23. Article 12 of the BMR specifies the conditions for a methodology to be used by an administrator for determining a benchmark. Recital 17 of the BMR mentions that ''An index is calculated using a formula or some other methodology on the basis of underlying values. There exists a degree of discretion in constructing the formula, performing the necessary calculation and determining the input data which creates a risk of manipulation. Therefore, all benchmarks sharing that characteristic of discretion should be covered by this Regulation […]''.

24. Article 5(3) of the ESAs' review states that ''ESMA shall develop draft regulatory technical standards to specify the conditions to ensure that the methodology referred to in paragraph 1 [of Article 12 of the BMR] complies with points (a) to (e) of that paragraph.''

25. Pursuant to Article 12(1) of the BMR, the RTS should therefore specify the conditions to ensure that a methodology:

a. is robust and reliable;

b. has clear rules identifying

Comparing proposed amendment...