The ECB has published on its opinion on a proposal for a regulation on indices used as benchmarks in financial instruments and financial contracts.
The proposed regulation introduces a common Union regulatory framework for the regulation of published indices that serve as benchmarks to reference financial instruments and financial contracts, such as mortgage credit agreements, or to measure the performance of investment funds in order to ensure their integrity and accuracy and thereby to contribute to the functioning of the internal market while achieving a high level of consumer and investor protection.
In the opinion, the ECB expresses its support for the proposed Regulation. It also states that although progress has been made in strengthening the governance process and restoring credibility, further steps need to be taken. In addition, the ECB strongly encourages market participants to be actively involved in the rate design process to ensure that the resulting rate meets the market's needs.