ECB publishes opinion on Benchmarks Regulation: ECB has delivered its opinion to the Council and EP on the proposal for a Benchmarks Regulation. Its comments and amendments cover, among other aspects, the need to:

  • clarify what "market" means for the purpose of an administrator being able to determine when the lack of sufficient transaction data enables it to rely on other data when calculating a benchmark;
  • have a more flexible definition of critical benchmark, based on financial stability considerations;
  • review the threshold for triggering an authority's power to require mandatory contributions, to prevent "slow death" of critical benchmarks;
  • drop the requirement on administrators to publish data, as all that is needed is for the data to be available to the relevant authority;
  • require the administrator to develop its own contingency procedures, and include them in its code of conduct; and
  • introduce a longer implementation period for the equivalence regime, as it may be difficult for third country legal frameworks to satisfy the equivalence conditions.

ECB has also expressed support for market-driven initiatives that identify transaction-based alternatives to Euribor. (Source: Opinion on the Benchmarks Regulation)