Jan 15, 2013
January 11th 2013 - The European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) have today published the results of their joint work on Euribor and propose principles for benchmark rate-setting processes. The publications include:
- A review of Euribor’s administration and management and clear recommendations to the Euribor-European Banking Federation (EEBF) to improve the governance and transparency of the rate-setting process;
- Formal EBA Recommendations to national authorities on the supervisory oversight of banks participating in the Euribor panel; and
- A joint ESMA-EBA consultation on Principles for Benchmark Setting Processes in the EU which establish a framework for the conduct of benchmark rate-setting and the activities of participants in the process.
Steven Maijoor, ESMA Chair, said: “The proposed Principles, which are aligned with on-going EU and international work, will give clarity to benchmark providers and users, and are an immediate step to be taken in advance of potential wider changes in the supervisory and regulatory framework for financial benchmarks.”
Andrea Enria, EBA Chair, said: “ESMA and the EBA are convinced that the prompt and full implementation of today’s recommendations is an important step towards ensuring that Euribor represents a transparent and reliable benchmark for financial transactions within the European Union.”
Click here to read ESMA and EBA's findings and recommendations.
Re-disseminated by The Asian Banker