Brussels, 21/02/2014 (Agence Europe) - The European Securities Markets Authority (ESMA) and the European Banking Authority (EBA) are pleased with the introduction by Euribor-EBF of their recommendations to address loopholes in benchmark management.
In a common assessment, EBA and ESMA say that their review found that “Euribor-EBF has undertaken reform measures across all affected areas, with four recommendations fully implemented and a further six recommendations partially implemented. This progress provides the basis for improved transparency of the benchmark-setting process, enhanced governance of the benchmark, and improved quality of the resulting index”. Euribor-EBF has improved its code of conduct and introduced a Code of Obligations for Panel Banks (COPB).
EBA and ESMA “encourage Euribor-EBF to take into account the ongoing regulatory advances on benchmark reform, including the IOSCO Principles for Financial Benchmarks, the proposed EU legal framework for benchmarks, and the Financial Stability Board's work on system reform”.
“The reforms undertaken by Euribor-EBF are a key prerequisite for ensuring confidence among rate submitters and final users of the benchmark. Beyond the immediate changes recommended by the EBA and ESMA, international cooperation on reforming interbank benchmarks is progressing. Euribor should be ready to respond to these advances”, commented ESMA chief Steven Maijoor. Andrea Enria, the head of EBA, said: “Its progress in terms of governance and conduct reflects a strong commitment to ensuring the quality of its benchmarks. I remain confident that the Euribor-EBF will soon complete its work, building on the continued support and commitment of panel banks”.
Welcoming the joint report by EBA and ESMA, Guido Ravoet, the Euribor-EBF director general said: “EBF remains committed to implementing all of the outstanding measures in the shortest possible timeframe”, pointing out that Euribor-EBF was working on an alternative benchmark based on real transactions. (EL/transl.fl)