Brussels, 19/09/2013 (Agence Europe) - The European Banking Federation (EBF) has welcomed the proposals unveiled by the European Commission on Wednesday 18 September to introduce legislation governing financial benchmarks (see EUROPE 10923 and 10924).
Guido Ravoet, EBF Director General, called for the talks on the draft regulation in question to be completed in the current European Parliament and Commission terms of office and for them to come into force as rapidly as possible. He specifically welcomed supervisors being given the option of forcing benchmark contributors to make contributions. They can be forced by benchmark supervisory bodies to continue to supply data used in the formation of benchmarks.
EBF notes that benchmark supervision is more likely to be decentralised. The Commission has suggested that the job should go to national supervisory bodies, thus the UK for LIBOR and Belgium for EURIBOR, in special colleges to cover cross-border implications.
Ravoet says this makes it essential to ensure close coordination among national supervisory bodies and the European Securities Market Authority, which will have a mediatory role. EBF says improvements have been made on the formation of EURIBOR and promises to publish a list of measures shortly, following recommendations from the EBA and ESMA. (EL/transl.fl)