73 Amendments of Werner LANGEN related to 2013/0314(COD)
Amendment 6 #
Proposal for a regulation
Recital 8
Recital 8
(8) The scope of this Regulation should be as broad as necessary to create a preventive regulatory framework. The production of benchmarks involves discretion in their determination and is inherently subject to certain types of conflicts of interest, which implies the existence of opportunities and incentives to manipulate those benchmarks. These risk factors are common to all benchmarks, and allbut their form depends greatly ofn them should be input data used. It should be permitted to madke benchmarks subject to adequate governance and control requirements, without, however, infringing the proportionality principle. Since the vulnerability and importance of a benchmark variesy over time, restricting the scope by reference to currently important or vulnerable indices would not address the risks that any benchmark may pose in the future. In particular, benchmarks that are currently not widely used may be so used in the future, so that, in their regard, even a minor manipulation may have significant impact.
Amendment 7 #
Proposal for a regulation
Recital 9
Recital 9
(9) The critical determinant of the scope of this Regulation should be whether the output value of the benchmark, which determines the value of a financial instrument, or financial contract or measures the performance of an investment fund, can be manipulated. Therefore the scope should not be dependent on the nature of the input data. Benchmarks calculated from economic input data, such as share prices and non- economic number or values such as weather parameters should thus be included. The framework should cover those benchmarks subject to these risks, but should also provide for a proportionate response to the risks that different benchmarks pose. This Regulation should therefore cover all benchmarks which are used to price financial instruments listed or traded on regulated venues. In the case of commodity benchmarks, however, the IOSCO (International Organisation of Securities Commissions) Principles for Oil Price Reporting Agencies, published on 5 October 2012, and the IOSCO review of those principles, due to be published in May or June 2014, should be taken into account.
Amendment 13 #
Proposal for a regulation
Recital 29
Recital 29
(29) Different types of benchmark and different benchmark sectors have different characteristics, vulnerabilities and risks. The provisions of this Regulation should be further specified for particular benchmark sectors and types. Interbank interest rate benchmarks are benchmarks that play an important role in the transmission of monetary policy and so it is necessary to specify how these provisions would apply to these benchmarks in this Regulation. Commodity benchmarks are widely used and have sector -specific characteristics and so it is necessary to specify how these provisions would apply to these benchmarks inwhether and to what extent these benchmarks may be exempted from the provisions of this Regulation.
Amendment 17 #
Proposal for a regulation
Article 2 – paragraph 2 – point b a (new)
Article 2 – paragraph 2 – point b a (new)
Amendment 18 #
Proposal for a regulation
Article 2 – paragraph 2 – point b b (new)
Article 2 – paragraph 2 – point b b (new)
(bb) commodity benchmarks as defined in Article 3(1)(20) which comply with the IOSCO Principles of 5 October 2012 for Oil Price Reporting Agencies or the IOSCO Principles of 17 July 2013 for Financial Benchmarks, until such time as ESMA, on the basis of the review of the IOSCO Principles for Oil Price Reporting Agencies, due to be published in May or June 2014, and of Annex III of this Regulation, has determined whether and how commodity benchmarks can be encompassed within the scope of this Regulation or whether they should be governed by their own rules.
Amendment 20 #
Proposal for a regulation
Article 3 – paragraph 1 – point 2
Article 3 – paragraph 1 – point 2
(2) ‘benchmark’ means any index by reference to which the amount payable under a financial instrument or a financial contract, or the value of a financial instrument is determined or an index that is used to measure the performance of an investment fund; this does not apply to reference prices or settlement prices originating from central counterparties (CCPs) as defined in Article 2(1) of Regulation (EU) No 648/2012 or to financial instruments as defined in Article 3(1)(13) of this Regulation;
Amendment 21 #
Proposal for a regulation
Article 3 – paragraph 1 – point 5
Article 3 – paragraph 1 – point 5
(5) ‘user of a benchmark’ means any person who issues or owns a financial instrument or is party toholds an active position in a financial instrument which references a benchmark or who issues a financial contracinstrument which references a benchmark;
Amendment 22 #
Proposal for a regulation
Article 3 – paragraph 1 – point 7
Article 3 – paragraph 1 – point 7
(7) ‘contributor’ means a natural or legal person contributing input data not constituting regulated data as defined in Article 3(1)(11);
Amendment 23 #
Proposal for a regulation
Article 3 – paragraph 1 – point 11
Article 3 – paragraph 1 – point 11
(11) ‘regulated data’ means input data that isare contributed directly from a trading venue as defined in point (25) of paragraph 1 of Article 2 of [MIFIR] or an approved publication arrangement as defined in point (18) of paragraph 1 of Article 2 of [MIFIR] or another regulated venue outside the Union or an approved reporting arrangement as defined in point (20) of paragraph 1 of Article 2 of [MIFIR] in accordance with mandatory post -trade data requirements or an electricity exchange as referred to in point (j) of paragraph 1 of Article 37 of Directive 2009/72/EC19 or a natural gas exchange as referred to in point (j) of paragraph 1 of Article 41 of Directive 2009/73/EC20 or an auction platform referred to in Article 26 or in Article 30 of Regulation (EU) No 1031/2010 of the European Parliament and of the Council; __________________ 20the data may constitute transaction data and, in exceptional cases, bids and offers; __________________ 20 OJ L 9, 14.8.2009, p. 112. OJ L 9, 14.8.2009, p. 112.
Amendment 25 #
Proposal for a regulation
Article 3 – paragraph 1 – point 20
Article 3 – paragraph 1 – point 20
Amendment 28 #
Proposal for a regulation
Article 3 – paragraph 1 – point 21
Article 3 – paragraph 1 – point 21
Amendment 29 #
Proposal for a regulation
Article 3 – paragraph 1 – point 21 a (new)
Article 3 – paragraph 1 – point 21 a (new)
(21a) ‘objective benchmark’ means a benchmark that uses only regulated input data and a strictly rule-based methodology;
Amendment 38 #
Proposal for a regulation
Article 7 – paragraph 1 – point b
Article 7 – paragraph 1 – point b
(b) The administrator shall obtain the input data from a reliable and representative panel or sample of contributors so as to ensure that the resultant benchmark is reliable and representative of the market or economic reality that the benchmark is intended to measure (‘Representative contributors’). Where benchmarks are based on transactions, the administrator shall obtain the input data in aggregated anonymous form from transaction registers and regulators, in accordance with Directive 2004/39/EC, Regulation (EU) No 1227/2011, and Regulation (EU) No 648/2012.
Amendment 42 #
Proposal for a regulation
Article 9 – paragraph 1
Article 9 – paragraph 1
Amendment 44 #
Proposal for a regulation
Article 9 – paragraph 2
Article 9 – paragraph 2
2. The code of conduct shall be signed by the administrator and the contributors and shall be legally binding on all parties to it, provided that it has been agreed by administrators and a number of contributors sufficiently representative of the market.
Amendment 54 #
Proposal for a regulation
Article 12 – paragraph 2
Article 12 – paragraph 2
Amendment 57 #
Proposal for a regulation
Article 12 – paragraph 3 – introductory part
Article 12 – paragraph 3 – introductory part
Amendment 60 #
Proposal for a regulation
Article 12 – paragraph 3 – point j
Article 12 – paragraph 3 – point j
Amendment 61 #
Proposal for a regulation
Article 12 – paragraph 3 – point k
Article 12 – paragraph 3 – point k
Amendment 64 #
Proposal for a regulation
Article 12 – paragraph 3 – point l
Article 12 – paragraph 3 – point l
Amendment 72 #
Proposal for a regulation
Article 16 – paragraph 1
Article 16 – paragraph 1
1. An administrator shall publish the input datarelevant methodology used to determine the benchmarkindex, together with, in the case of non-objective benchmarks, the input data used, immediately after publication of the benchmark except where publication would (i) have serious adverse consequences for the contributors or (ii) adversely affect the reliability or integrity of the benchmark. In such cases publication may be de or (iii) where the input data correspond to regulayted for a period that significantly diminishes these consequences. Any personal data included in input data shall not be publishdata as defined in Article 3(1)(11). The administrator shall not be required to publish data whose integrity and confidentiality cannot be guaranteed.
Amendment 76 #
Proposal for a regulation
Article 18
Article 18
Amendment 78 #
Proposal for a regulation
Article 19 – paragraph 1
Article 19 – paragraph 1
A supervised entity may use a benchmark in the Union as a reference in a financial instrument or financial contract or to measure the performance of an investment fund if it is provided by an administrator authorised in accordance with Article 23 or an administrator located in a third country that is registered in accordance with Article 21. Non-objective benchmarks must be provided by an administrator covered by the authorisation requirement under Article 22. A supervised entity may also use objective benchmarks of a registered administrator located in a third country if the administrator declares to its competent authority that the benchmarks conform to the IOSCO Principles for Financial Benchmarks, published on 17 July 2013.
Amendment 86 #
Proposal for a regulation
Article 22 – paragraph 1
Article 22 – paragraph 1
Amendment 87 #
Proposal for a regulation
Article 23 – paragraph 1
Article 23 – paragraph 1
1. The administrator, if covered by the authorisation requirement under Article 22(1), shall submit an application for authorisation to the competent authority of the Member State in which the administrator is located.
Amendment 97 #
Proposal for a regulation
Article 39 – paragraph 1 a (new)
Article 39 – paragraph 1 a (new)
1a. As regards commodity benchmarks as defined in Article 3(1)(20), ESMA, on the basis of the review of the IOSCO Principles of 5 October 2012 for Oil Price Reporting Agencies, due to be published in May or June 2014, and of Annex III of this Regulation, which is to serve as a guide, shall, within 18 months of the entry into force of this Regulation, determine whether and how commodity benchmarks can be encompassed within the scope of this Regulation or whether they should be governed by their own rules. It shall submit its findings to the European Parliament and the Commission.
Amendment 98 #
Proposal for a regulation
Article 39 – paragraph 1 b (new)
Article 39 – paragraph 1 b (new)
1b. Where benchmarks have been provided by an administrator established in a third country, the conditions set out in Article 20(1)(a) to (e) shall apply only on expiry of a transitional period of 36 months following the entry into force of this Regulation, if those benchmarks comply at the time of entry into force of this Regulation with the IOSCO principles of 17 July 2013 for Financial Benchmarks.
Amendment 101 #
Proposal for a regulation
Annex I – section A – part I – point 1
Annex I – section A – part I – point 1
1. The provision of a benchmark shall be operationally and functionally separated from any part of the administrator’s business that may create an actual or potential conflict of interest. If these conflicts cannot be managed, the benchmark operator shall cease any activities or relationships that create these conflicts or cease producingA legal or natural person that has control over the provision of a benchmark may not simultaneously act, operationally or functionally, as a user of theat benchmark.
Amendment 102 #
Proposal for a regulation
Annex I – section A – part I – point 8 – point b
Annex I – section A – part I – point 8 – point b
Amendment 103 #
Proposal for a regulation
Annex I – section A – part II – point 10 – point a
Annex I – section A – part II – point 10 – point a
(a) where the administrator is owned or controlled by contributors or usersf input data not constituting transaction data, a separate board or committee, whose composition ensures its independence and the absence of conflicts of interest. Where the administrator is owned or controlled by contributors, a majority of the committee should not be contributors. Where the administrator is owned or controlled by users, a majority of the committee should not be users;
Amendment 104 #
Proposal for a regulation
Annex I – section A – part II – point 10 – point b
Annex I – section A – part II – point 10 – point b
(b) where the administrator is not owned or controlled by its contributors or usersf input data not constituting transaction data, an internal board or committee. TA majority of the members of the internal board or committee shallmay not be involved in the provision of any benchmark they oversee;
Amendment 105 #
Proposal for a regulation
Annex I – section A – part II – point 10 – point c
Annex I – section A – part II – point 10 – point c
(c) where the administrator is able to demonstrate that in view of the nature, scale and complexity of its provision of the benchmark, and the risk and impact of the benchmark, the requirements under points a and b are not proportionate, a natural person may provide the function of oversight officer. This applies in particular to objective benchmarks if the administrator has declared to its competent authority that they conform to the IOSCO Principles for Financial Benchmarks, published on 17 July 2013. The oversight officer must not be involved in the provision of any benchmark they oversee.
Amendment 106 #
Proposal for a regulation
Annex I – section A – part IV – point 16
Annex I – section A – part IV – point 16
16. For critical benchmarks, as defined in Article 3(1)(21), and non-objective benchmarks, the administrator shall appoint an independent external auditor to review and report on the administrator’s adherence to the benchmark methodology and this Regulation if the size and complexity of the administrator’s benchmark operations poses a significant risk to financial stability.
Amendment 107 #
Proposal for a regulation
Annex I – section B – point 1 – point f a (new)
Annex I – section B – point 1 – point f a (new)
(fa) the administrator shall inform the contributors of the benchmark(s) concerned of the outsourcing without delay.
Amendment 109 #
Proposal for a regulation
Annex I – section C – part II – point 2 – point a
Annex I – section C – part II – point 2 – point a
(a) shall take into account factors including the size and normal liquidity of the market, its level of development, the transparency of trading and the positions of market participants, market concentration, market dynamics, and the adequacy of any sample to represent the economic reality that the benchmark is intended to measure;
Amendment 110 #
Proposal for a regulation
Annex III – paragraph 1
Annex III – paragraph 1
This Annex applies to ‘commodity benchmarks’ which means ais intended as a guide for ESMA to help it determine whether and how commodity benchmarks where the underlying asset for the purposes of Article 3(1)(c) is a commodity within the meaning of point (2) of Article 2 of Commission Regulation (EC) No 1287/200628. __________________ 28ithin the meaning of Article 3(1)(20) can be encompassed within the scope of this regulation or whether they should be governed by their own rules. OJ L 241, 2.9.2006, p. 1.
Amendment 111 #
Proposal for a regulation
Annex III – paragraph 1 – footnote 28
Annex III – paragraph 1 – footnote 28
Amendment 139 #
Proposal for a regulation
Recital 8
Recital 8
(8) The scope of this Regulation should be as broad as necessary to create a preventive regulatory framework. The production of benchmarks involves discretion in their determination and is inherently subject to certain types of conflicts of interest, which implies the existence of opportunities and incentives to manipulate those benchmarks. These risk factors are common to all benchmarks, and all of them shouldlthough the precise form they take depends to a significant degree on the input data used. It should be possible for benchmarks to be made subject to adequate governance and control requirements, with the proviso that these must be proportional. Since the vulnerability and importance of a benchmark varies over time, restricting the scope by reference to currently important or vulnerable indices would not address the risks that any benchmark may pose in the future. In particular, benchmarks that are currently not widely used may be so used in the future, so that, in their regard, even a minor manipulation may have significant impact.
Amendment 147 #
Proposal for a regulation
Recital 9
Recital 9
(9) The critical determinant of the scope of this Regulation should be whether the output value of the benchmark, which determines the value of a financial instrument, financial contract or measures the performance of an investment fund, can be manipulated. Therefore the scope should not be dependent on the nature of the input data. Benchmarks calculated from economic input data, such as share prices and non- economic number or values such as weather parameters should thus be included. The framework should cover those benchmarks subject to these risks, but should also provide for a proportionate response to the risks that different benchmarks pose. This Regulation should therefore cover all benchmarks which are used to price financial instruments listed or traded on regulated venues. In the case of commodity benchmarks, however, due account should be taken of the IOSCO Principles for Oil Price Reporting Agencies of 5 October 2012 and of the outcome of the review of those principles by the IOSCO, which is due to be published in May or June 2014.
Amendment 175 #
Proposal for a regulation
Recital 29
Recital 29
(29) Different types of benchmark and different benchmark sectors have different characteristics, vulnerabilities and risks. The provisions of this Regulation should be further specified for particular benchmark sectors and types. Interbank interest rate benchmarks are benchmarks that play an important role in the transmission of monetary policy and so it is necessary to specify how these provisions would apply to these benchmarks in this Regulation. Commodity benchmarks are widely used and have sector specific characteristics and so it is necessary to specify how these provisions would apply to these benchmarks inwhether and to what extent these benchmarks can be excluded from the scope of the provisions of this Regulation.
Amendment 213 #
Proposal for a regulation
Article 2 – paragraph 2 – point b a (new)
Article 2 – paragraph 2 – point b a (new)
(ba) reference prices or settlement prices produced by Central Counterparties (CCPs)
Amendment 215 #
Proposal for a regulation
Article 2 – paragraph 2 – point b b (new)
Article 2 – paragraph 2 – point b b (new)
(bb) commodity benchmarks within the meaning of Article 3(1)(20) which are consistent with the IOSCO Principles for Oil Price Reporting Agencies of 5 October 2012 or the IOSCO Principles for Financial Benchmarks of 17 July 2013 for the period until ESMA has, on the basis of the outcome of the review of the IOSCO Principles for Oil Price Reporting Agencies which is due to be published in May or June 2014 and on the basis of Annex III to this Regulation, has determined whether and how commodity benchmarks can be included in the scope of this Regulation or whether separate rules would be appropriate and necessary.
Amendment 229 #
Proposal for a regulation
Article 3 – paragraph 1 – point 2
Article 3 – paragraph 1 – point 2
2. ‘benchmark’ means any index by reference to which the amount payable under a financial instrument or a financial contract, or the value of a financial instrument is determined or an index that is used to measure the performance of an investment fund; this shall not apply to reference prices or settlement prices produced by Central Counterparties (CCPs) within the meaning of Article 2(1) of Regulation (EU) No 648/2012 or to financial instruments within the meaning of Article 3(1)(13).
Amendment 233 #
Proposal for a regulation
Article 3 – paragraph 1 – point 5
Article 3 – paragraph 1 – point 5
5. ‘user of a benchmark’ means any person who issues or owns a financial instrument or is party toholds an active position in a financial instrument which references a benchmark or who issues a financial contracinstrument which references a benchmark;
Amendment 237 #
Proposal for a regulation
Article 3 – paragraph 1 – point 7
Article 3 – paragraph 1 – point 7
7. ‘contributor’ means a natural or legal person contributing input data which are not regarded as regulated data within the meaning of Article 3(1)(11);
Amendment 244 #
Proposal for a regulation
Article 3 – paragraph 1 – point 11
Article 3 – paragraph 1 – point 11
11. ‘regulated data’ means input data that is contributed directly from a trading venue as defined in point (25) of paragraph 1 of Article 2 of [MIFIR] or approved publication arrangement as defined in point (18) of paragraph 1 of Article 2 of [MIFIR ] or another regulated trading venue outside the European Union or an approved reporting arrangement as defined in point (20) of paragraph 1 of Article 2 of [MIFIR] in accordance with mandatory post trade data requirements or an electricity exchange as referred to in point (j) of paragraph 1 of Article 37 of Directive 2009/72/EC19 or a natural gas exchange as referred to in point (j) of paragraph 1 of Article 41 of Directive 2009/73/EC20 or an auction platform referred to in Article 26 or in Article 30 of Regulation (EU) No 1031/2010 of the European Parliament and of the Council; the data may take the form of transaction data and, in exceptional cases, bids and offers. __________________ 20 OJ L 9, 14.8.2009, p. 112.
Amendment 261 #
Proposal for a regulation
Article 3 – paragraph 1 – point 20
Article 3 – paragraph 1 – point 20
20. ‘commodity benchmark' means a benchmark where the underlying asset for the purposes of point (1)(c) of this Article is a commodity within the meaning of point (21) of Article 2 of Commission Regulation (EC) No 1287/200627; Emission allowances as defined in point (11) of Section C of Annex I of [MiFID] shall not be considered commodities for the purpose of this Regulation; __________________ 27 OJ L 241, 2.9.2006, p. 1.
Amendment 269 #
Proposal for a regulation
Article 3 – paragraph 1 – point 21
Article 3 – paragraph 1 – point 21
21. ‘critical benchmark’ means a benchmark, the majority of contributors to whi which does not meet the criteria for an objective bench mare supervised entitiesk within the meaning of point 21a (new) and that reference financial instruments having a notional value of at least 500 billion euro;
Amendment 272 #
Proposal for a regulation
Article 3 – paragraph 1 – point 21 a (new)
Article 3 – paragraph 1 – point 21 a (new)
21a. 'objective benchmark' means a benchmark which uses only regulated input data and a strictly rule-based methodology;
Amendment 304 #
Proposal for a regulation
Article 7 – paragraph 1 – subparagraph 1 – point b
Article 7 – paragraph 1 – subparagraph 1 – point b
(b) The administrator shall obtain the input data from a reliable and representative panel or sample of contributors so as to ensure that the resultant benchmark is reliable and representative of the market or economic reality that the benchmark is intended to measure (‘Representative contributors’). In the case of benchmarks which are based on transactions, the administrator shall receive the input data in aggregated and anonymised form from transaction registers and regulatory authorities, in accordance with the provisions of Directive 2004/39/EC, Regulation (EU) No 1227/2011 and Regulation (EU) No 648/2012.
Amendment 322 #
Proposal for a regulation
Article 9 – paragraph 1
Article 9 – paragraph 1
(1) The administrator shallmay, in cooperation with the contributors, 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 I.
Amendment 325 #
Proposal for a regulation
Article 9 – paragraph 2
Article 9 – paragraph 2
(2) The code of conduct shall be signed by the administrator and the contributors and, provided that administrators and a number of contributors which is properly representative of the market have given their agreement, shall be legally binding on all parties to it.
Amendment 356 #
Proposal for a regulation
Article 12 – paragraph 2
Article 12 – paragraph 2
Amendment 360 #
Proposal for a regulation
Article 12 – paragraph 3 – introductory part
Article 12 – paragraph 3 – introductory part
(3) The Commission shall be empowered to adopt delegated acts in accordance with Article 39 to specify, or adjust, in light of market and technological developments and international developments, the following elements of Annexes II and I II:
Amendment 371 #
Proposal for a regulation
Article 12 – paragraph 3 – point j
Article 12 – paragraph 3 – point j
Amendment 373 #
Proposal for a regulation
Article 12 – paragraph 3 – point k
Article 12 – paragraph 3 – point k
Amendment 375 #
Proposal for a regulation
Article 12 – paragraph 3 – point l
Article 12 – paragraph 3 – point l
Amendment 426 #
Proposal for a regulation
Article 16 – paragraph 1
Article 16 – paragraph 1
(1) An administrator shall publish details of the methodology used to draw up the index and, in respect of non-objective benchmarks, the input data used to determine the benchmark immediately after publication of the benchmark except where (i) publication would have serious adverse consequences for the contributors or (ii) would adversely affect the reliability or integrity of the benchmark. In such cases publication may be de or (iii) the input data are regulayted for a period that significantly diminishes these consequences. Any personal data included in input data shall not be publishdata within the meaning of Article 3(1)(11). The administrator must not publish any data whose integrity and confidentiality cannot be guaranteed.
Amendment 438 #
Proposal for a regulation
Article 18
Article 18
Amendment 449 #
Proposal for a regulation
Article 19 – paragraph 1
Article 19 – paragraph 1
A supervised entity may use a benchmark in the Union as a reference in a financial instrument or financial contract or to measure the performance of an investment fund, if it is provided by an administrator authorised in accordance with Article 23 or an administrator located in a third country that is registered in accordance with Article 21n which connection non-objective benchmarks must be provided by an administrator covered by the authorisation requirement in accordance with Article 22. A supervised entity may also use objective benchmarks produced by a registered administrator located in a third country if the administrator in question declares to the competent authority that the benchmarks are consistent with the IOSCO Principles for Financial Benchmarks of 17 July 2013.
Amendment 492 #
Proposal for a regulation
Article 22 – paragraph 1
Article 22 – paragraph 1
(1) An administrator shall apply for authorisation to provide benchmarks if it provides indices which are used or intended to bnon-objective benchmarks or objective benchmarks which are not consistent with the IOSCO Principles of 17 July 2013 which are used to reference financial instruments or financial contracts or to measure the performance of an investment fund.
Amendment 496 #
Proposal for a regulation
Article 23 – paragraph 1
Article 23 – paragraph 1
(1) The administrator covered by the authorisation requirement pursuant to Article 22(1) shall submit an application for authorisation to the competent authority of the Member State in which the administrator is located.
Amendment 569 #
Proposal for a regulation
Article 39 – paragraph 1 a (new)
Article 39 – paragraph 1 a (new)
(1a) In the case of commodity benchmarks within the meaning of Article 3(1)(20), within 18 months following the entry into force of this Regulation ESMA shall, acting on the basis of the outcome of the review of the IOSCO Principles for Oil Price Reporting Agencies of 5 October 2012 which is due to be published in May or June 2014 and on the basis of Annex III to this Regulation, determine whether and how commodity benchmarks can be included in the scope of this Regulation or whether separate rules would be appropriate and necessary. ESMA shall submit the results of the review to Parliament and the Commission.
Amendment 571 #
Proposal for a regulation
Article 39 – paragraph 1 b (new)
Article 39 – paragraph 1 b (new)
(1b) The requirements laid down in Article 20(1)(a) to (e) shall apply to benchmarks which are provided by an administrator established in a third country only after a transitional period of 36 months following the entry into force of this Regulation has elapsed and provided that the benchmarks in question are consistent with the IOSCO Principles for Financial Benchmarks of 17 July 2013 on the date when this Regulation enters into force.
Amendment 585 #
Proposal for a regulation
Annex 1 – section 1 – part I – point 1
Annex 1 – section 1 – part I – point 1
1. The provision of a benchmark shall be operationally and functionally separated from any part of the administrator’s business that may create an actual or potential conflict of interest. If these conflicts cannot be managed, the benchmark operator shall cease any activities or relationships that create these conflicts or cease producingA legal or natural person who exercises control over the provision of a benchmark may not at the same time be an organisational or functional user of theat benchmark.
Amendment 592 #
Proposal for a regulation
Annex 1 – section 1 – part I – point 8 – point b
Annex 1 – section 1 – part I – point 8 – point b
Amendment 598 #
Proposal for a regulation
Annex 1 – section 1 – part II – point 10 – point a
Annex 1 – section 1 – part II – point 10 – point a
(a) where the administrator is owned or controlled by contributors or usersf input data which are not transaction data, a separate board or committee, whose composition ensures its independence and the absence of conflicts of interest. Where the administrator is owned or controlled by contributors, a majority of the committee should not be contributors. Where the administrator is owned or controlled by users, a majority of the committee should not be users;
Amendment 599 #
Proposal for a regulation
Annex 1 – section 1 – part II – point 10 – point b
Annex 1 – section 1 – part II – point 10 – point b
(b) where the administrator is not owned or controlled by its contributors or usersf input data which are not transaction data, an internal board or committee. TA majority of the members of the internal board or committee shallmay not be involved in the provision of any benchmark they oversee;
Amendment 601 #
Proposal for a regulation
Annex 1 – section 1 – part II – point 10 – point c
Annex 1 – section 1 – part II – point 10 – point c
(c) where the administrator is able to demonstrate that in view of the nature, scale and complexity of its provision of the benchmark, and the risk and impact of the benchmark, the requirements under points a and b are not proportionate, a natural person may provide the function of oversight officer. This shall apply in particular to objective benchmarks, in respect of which the administrator shall declare to the competent authority that they are consistent with the IOSCO Principles for Financial Benchmarks of 17 July 2013. The oversight officer must not be involved in the provision of any benchmark they oversee.
Amendment 607 #
Proposal for a regulation
Annex 1 – section 1 – part IV – point 16
Annex 1 – section 1 – part IV – point 16
16. For critical benchmarks as defined in Article 3(1)(21) and for non-objective benchmarks, the administrator shall appoint an independent external auditor to review and report on the administrator’s adherence to the benchmark methodology and this Regulation if the size and complexity of the administrator’s benchmark operations poses a significant risk to financial stability.
Amendment 619 #
Proposal for a regulation
Annex 1 – section 2 – point 1 – point f a (new)
Annex 1 – section 2 – point 1 – point f a (new)
(fa) The administrator shall inform the contributors to the relevant benchmark(s) without delay of the outsourcing arrangements.
Amendment 624 #
Proposal for a regulation
Annex 1 – section 3 – part II – point 2 – point a
Annex 1 – section 3 – part II – point 2 – point a
(a) shall take into account factors including the size and normal liquidity of the market, the degree of development of the market, the transparency of trading and the positions of market participants, market concentration, market dynamics, and the adequacy of any sample to represent the economic reality that the benchmark is intended to measure;
Amendment 645 #
Proposal for a regulation
Annex 3 – paragraph 1
Annex 3 – paragraph 1
This Annex applies to ‘commodity benchmarks’ which means a benchmark where the underlying asset for the purposes of Article 3(1)(c) is a commodityprovides ESMA with a basis for determining whether and how commodity benchmarks within the meaning of point Article 3(1)(20) of Article 2 of Commission Regulation (EC) No 1287/200628. __________________ 28 OJ L 241, 2.9.2006, p. 1can be included in the scope of this Regulation or whether special rules are appropriate and necessary.