On September 27, the European Securities and Markets Authority (ESMA) published an updated version of its questions and answers (Q&As) on the Benchmarks Regulation (BMR).

ESMA has added the following seven new questions and answers, all dated September 26:

  • Q&A 5.8 clarifies when financial instruments traded on a systematic internalizer are within scope of the BMR;
  • Q&A 5.9 sets out when banks issuing certificates are users of benchmarks;
  • Q&A 5.10 explains why the net asset value of investment funds should be considered input data and not benchmarks;
  • Q&A 7.2 confirms that a single application for endorsement can include a family of benchmarks;
  • Q&A 7.3 sets out ESMA’s view that benchmark statements should be published in a language that is accepted by the national competent authority of the relevant member state; and
  • Q&As 8.2 and 8.3 concern written plans for cessation or material changes of a benchmark under Article 28(2) of the BMR and, specifically, when the written plan to be produced by benchmark users should be considered “robust” and how the plan should be reflected in the contractual relationship with clients.

ESMA first published the Q&As in July 2017 and most recently updated them in July 2018 (further details of that update can be found in the July 20 edition of Corporate & Financial Weekly Digest).

ESMA’s updated Q&As on the BMR are available here.