Thomson Reuters provides efficient, transparent and reliable financial benchmarks and indices across all major asset classes, facilitating customer compliance with the new regulation.
Continuing its commitment to providing world-class benchmarking services for the financial services industry, Thomson Reuters today announced that it has been approved as an authorized Benchmark Administrator under the EU Benchmarks Regulation (BMR) which came into effect on January 1, 2018.
As an authorized administrator, Thomson Reuters Benchmark Services Limited (TRBSL), a subsidiary responsible for certain benchmarks and indices, is now certified to continue to administer, calculate and publish benchmarks in line with the European Union regulation, and consumers of these benchmarks can continue to use them in accordance with Regulation (EU) 2016/1011.
“The effective functioning of global markets relies on trust. We welcome the new EU Benchmark regulation that will further increase the trust that banks, asset managers, and consumers invest in global and regional benchmarks” says Stephan Flagel, global head of benchmarks and indices at Thomson Reuters. “As a provider of trusted benchmarks and indices services globally, Thomson Reuters, one of very few benchmark administrators that were already regulated by the FCA before the introduction of the EU BMR, has long been committed to administering benchmark rates and indices which are designed to be reflective of the markets and trusted by many of our customers.”
“We have a robust regulatory framework and proven infrastructure and are uniquely positioned to provide benchmarks and comprehensive administration services with integrity. We look forward to working with benchmark owners inside and outside the EU to ensure continuity of use for their benchmarks in the EU. As our EU BMR implementation program continues, we will also remain closely engaged with customers to help them understand how the regulation will affect them as index or benchmark users, and to feel confident that all indices and benchmarks administered by TRBSL, whether they are owned by us or administered for a third party, are compliant” added Flagel.
The indices/benchmarks that are currently administered by TRBSL under EU BMR are: WM/Reuters Closing Spot Rate; Canadian Dollar Offered Rate (“CDOR”); Canadian Offered Repo Rate Average (“CORRA”); and Saudi Arabian Interbank Offered Rate (“SAIBOR”), with plans to migrate additional benchmarks as part of the implementation program. Benchmarks administered by TRBSL’s parent company Thomson Reuters continue to be compliant under the EU BMR transition provision until they are migrated to TRBSL.
Thomson Reuters has been involved in calculating, administering and distributing benchmarks for over a quarter of a century. Thomson Reuters administers and calculates a wide range of benchmarks across all major asset classes globally and publishes 350 benchmarks in more than 90 countries.
Thomson Reuters operates its Benchmarks & Indices business under the Trust Principles mandated in its corporate charter, which guarantee integrity, independence and freedom from bias and its governance and control framework for benchmarks is in line with International Organization of Securities Commissions (IOSCO) principles for financial benchmarks principles. These are set to continuously improve the calculation management and governance of the benchmarks and indices it administers to help ensure they reflect the highest standards and meet all applicable regulation and industry guidance.
Thomson Reuters Benchmark Services Ltd was created in March 2014 as a separate and fully regulated subsidiary to prepare for the regulation of financial benchmarks, and provides an effective governance framework for the benchmarks it administers. For more about Thomson Reuters benchmarks, please visit:financial.thomsonreuters.com/benchmarks