Commenting on the briefing paper published by ISDA, the Asia Securities Industry and Financial Markets Association (ASIFMA), FIA, the Global Foreign Exchange Division (GFXD) and the Global Financial Markets Association (GFMA) with recommendations to reform the European Union Benchmarks Regulation (BMR) in light of the European Commission's review of the regulation,

David Clark, chairman of the European Venues and Intermediaries Association (EVIA), said: “The Briefing Paper is timely in view of the EU Consultation and its recommendations need to be integrated into any revision of BMR. In particular, clarity about the status of third country indices and benchmarks is essential as is a review of the definition of Critical, Significant and non-Significant benchmarks.

It is important to remember the original drivers of Benchmark Regulation: namely the integrity and governance of benchmarks in the light of market abuse, adherence to the IOSCO principles and impact on the financial economy. It would be helpful to review these at the same time as making any revisions to BMR highlighted by the Briefing.”

Alexander McDonald, CEO of the European Venues and Intermediaries Association (EVIA), added: "The paper raises some important and ascendant themes, namely the increasing role and reliance on disclosures going forward, together with the widespread subsidiarity of market functions across to central banks.

The topic of how a third country index becomes a benchmark in the EU will become an enduring question as the year end compliance dates approach; In theory deference and proportionality would be the appropriate tools, but without any third country benchmark regimes it will need to be statements around the 17 IOSCO Principles to which the industry will coalesce."