The International Organization of Securities Commissions (IOSCO) published today the comment letters to the consultation paper on Principles for Financial Benchmarks that was issued on 16 April 2013. The report sought public comment on a set of high-level principles for benchmarks used in global financial markets. More than 40 responses were received.
Because of the wide diversity of benchmarks, IOSCO also asked for public comment on a subset of more detailed principles for benchmarks having specific risks arising from their reliance on submissions and/or their ownership structure.
The principles form part of IOSCO´s efforts to enhance the integrity, the reliability and the oversight of benchmarks by establishing guidelines for benchmark administrators and other relevant bodies on governance, benchmark quality, quality of the methodology, and accountability mechanisms.
On 11 January 2013 the Board-level Task Force published a Consultation Report on Financial Benchmarks,which requested comment from the public on policy issues arising from its work on Financial Market Benchmarks. The Consultation Report discussed concerns regarding the potential inaccuracy or manipulation of benchmarks and identified benchmark-related policy issues across securities and derivatives, and other financial sectors.
On 11 March 2013 IOSCO published over 50 comment letters submitted in response to the Consultation Report. These comments were considered by the Task Force in the development of the draft principles. The Task Force also held two industry roundtables in February 2013, in London and in Washington.