5 Amendments of Eva KAILI related to 2013/0314(COD)
Amendment 249 #
Proposal for a regulation
Recital 1
Recital 1
(1) The pricing of many financial instruments and financial contracts depends on the accuracy and integrity of benchmarks. Cases of manipulation of interest rate benchmarks such as LIBOR and, EURIBOR and foreign exchange benchmarks, as well as allegations that energy, oil and foreign exchange and oil benchmarks have been manipulated, have demonstrated that benchmarks whose setting processes share certain characteristics, such as beingcan be subject to conflicts of interest, the use of and may have discretionary and weak governance, may b regimes that are vulnerable to manipulation. Failures in, or doubts about, the accuracy and integrity of indices used as benchmarks may undermine market confidence, cause losses to consumers and investors and distort the real economy. It is therefore necessary to ensure the accuracy, robustness and integrity of benchmarks and the benchmark setting process.
Amendment 368 #
Proposal for a regulation
Article 5 – paragraph 3 a (new)
Article 5 – paragraph 3 a (new)
3a. The administrator shall establish specific internal control procedures to ensure the integrity and reliability of the employee or person responsible to publish the benchmark, including a review of the market awareness and experience of that person or employee, before the dissemination of the benchmark.
Amendment 379 #
Proposal for a regulation
Article 7 – paragraph 1 – subparagraph 1 – point a – paragraph 1
Article 7 – paragraph 1 – subparagraph 1 – point a – paragraph 1
(a) The input data shall be sufficient to represent accurately and reliably the market or economic reality that the benchmark is intended to measure (‘Sufficient and accurate data’), and shall be verifiable; when relevant transaction data are not available for the production of a specific benchmark, other forms of input including non-transaction data (e.g. experts opinion, financial econometric methods, etc), can be employed, and this input should qualify according to predetermined procedures set in advance by the administrator who is responsible for the quality and integrity of the benchmark.
Amendment 399 #
Proposal for a regulation
Article 7 – paragraph 3 a (new)
Article 7 – paragraph 3 a (new)
3a. Where the input data of a benchmark is contributed from a front office function, which means any department, division, group, or personnel of contributors or any of its affiliates that performs any pricing trading, sales, marketing, advertising, solicitation, structuring, or brokerage activities, the administrator shall: (a) where reasonably available, obtain data from other sources that corroborates that input data; b) ensure that contributors have reasonable internal oversight and verification procedures that allow for: - validation of input contributed, including procedures for multiple reviews by senior staff to check inputs and internal sign off procedures by management for submitting inputs; - the physical separation of employees in the front office function and reporting lines; - full consideration of conflict management measures to identify, disclose, manage, mitigate and avoid existing or potential incentives to manipulate or otherwise influence data inputs, including through remuneration policies and conflicts of interest between the contribution of input data activities and any other business of the contributor, its affiliates, or their respective clients or customers.
Amendment 407 #
Proposal for a regulation
Article 9 – paragraph 1
Article 9 – paragraph 1
1. The administrator shall adopt a code of conduct for each benchmark clearly specifying the administrator's and contributors' responsibilities and obligations with respect to the provision of the benchmark which shall include a clear description of the input data to be provided, and at least the elements set out in Section D of Annex Icontribution of input data and is obliged to reassess in an annual basis the compliance of each submitters with the code of conduct as updated from time to time.