28. While the methodology used for calculating the benchmark is defined by each administrator, it is important that this methodology verifies certain conditions as set in the BMR in order to preserve the integrity of the benchmark.
Methodology is robust and reliable
29. The first condition to be verified is for the methodology to be robust and reliable. Indeed, it is of paramount importance for users of benchmarks that the methodology used is robust and can be relied on for the continuous calculation of the benchmark. To that end and in order to ensure that the methodology complies with point a) of Article 12(1) of BMR, the administrator should use a methodology that represents the underlying market or economic reality that it seeks to measure and incorporates all factors including parameters and input data that are deemed relevant in order to continuously represent the underlying market that it is intended to measure.
30. Methodologies are generally based on assumptions that consist o
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