Circular CSSF 22/796 is a CSSF circular, published 31 January 2022. Subject: Application of the Guidelines of the European Securities and Market Authority (“ESMA”) on methodology, oversight function and record keeping under the Benchmarks Regulation (Ref. ESMA81-393-288).
\nMain topic: Benchmarks. Keywords: Benchmark regulation.
\nCircular CSSF 22/796 APPLICATION OF THE GUIDELINES OF THE EUROPEAN SECURITIES AND MARKET AUTHORITY ON METHODOLOGY, OVERSIGHT FUNCTION AND RECORD KEEPING UNDER THE
\nBENCHMARKS REGULATION
\nCircular CSSF 22/796 Re: Application of the Guidelines of the European Securities and Market Authority on methodology, oversight function and record keeping under the Benchmarks Regulation
\nLuxembourg, 31 January 2022
\nLadies and Gentlemen,
\nTo Benchmark Administrators
\nSubject: Application of the Guidelines of the European Securities and Market Authority (“ESMA”) on methodology, oversight function and record keeping under the Benchmarks Regulation 1 (Ref. ESMA81-393-288).
\nPurpose of the Circular The purpose of this circular is to inform you that the CSSF, in its capacity as competent authority, applies the Guidelines of ESMA on methodology, oversight function and record keeping under the Benchmarks Regulation (Ref. ESMA81393-288) (the “Guidelines”) published on 7 December 2021. Consequently, the CSSF has integrated the Guidelines into its administrative practice and regulatory approach with a view to promoting supervisory convergence in this field at European level. All persons or entities which are administrators as defined in Article 3(1)(6) of the Benchmarks Regulation (the “Benchmark Administrators”) must duly comply with them.
\nThe Guidelines The guidelines set out in Section 5 of the Guidelines are issued by ESMA in accordance with Article 16(1) of the ESMA Regulation 2. The guidelines set out in Section 6 of the Guidelines are issued by ESMA in accordance with Articles 5(6) and 13(4) of the Benchmarks Regulation.
\n1 Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 2
\nRegulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC3
\nThe Guidelines apply in relation to the application of: •
\nany methodology to be used to determine a critical or significant benchmark in exceptional circumstances in accordance with Article 13(1)(a) of the Benchmarks Regulation and Article 2(1)(l) of the Methodology Delegated Regulation 3;
\nmaterial changes to the methodology used to determine a critical or significant benchmark pursuant to Article 13(1)(c) and (2) of the Benchmarks Regulation and Article 4(1)(c) of the Methodology Delegated Regulation;
\nthe oversight function for critical and significant benchmarks pursuant to Article 5 of the Benchmarks Regulation and Article 1(3) of the Oversight Function Delegated Regulation 4;
\nthe record-keeping requirements pursuant to Article 8(1)(e) of the Benchmarks Regulation;
\nthe guidelines on non-significant benchmarks (Ref. ESMA70-145-1209), published on 20 December 2018 (the “Guidelines on non-significant benchmarks”).
\nThe Guidelines apply as from 31 May 2022. The Guidelines set out a transparent framework for administrators of critical and significant
\nbenchmarks
\nwhen
\nconsulting
\nmaterial
\nchanges
\nthe
\nmethodology or using an alternative methodology in exceptional circumstances, together with an adequate oversight function. Furthermore, the Guidelines aim at ensuring the common and consistent application of the record-keeping requirements related to the use of an alternative methodology for all Benchmark Administrators.
\nThe text above is the opening of the document; the PDF carries the whole.
\nDocument page, PDF. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.
"}