The International Organisation of Securities Commissions has said both completed and ongoing reforms have raised the overall governance and accountability of the financial benchmarks.

IOSCO said this in a statement following the publication of a review of the implementation of its principles for financial benchmarks by interest rate administrators.

The report, titled, ‘Review of the implementation of IOSCO’s principles for financial benchmarks by administrators of Libor, Euribor and Tibor’ was published on Tuesday as part of the Financial
Stability Board’s report on reforming major interest rate benchmarks.

A statement by the organisation explained that the report assessed the three major interest reference rates against the internationally agreed and endorsed IOSCO Principles for Financial Benchmarks.

The statement read in part, “The report finds that both completed and ongoing reforms have raised the overall oversight, governance, transparency and accountability of the three administrators and their respective benchmarks.

“This has undoubtedly improved the quality and integrity of the three benchmarks. IOSCO also notes that these reforms have occurred in the context of regulatory, operational and organisational changes concerning all three administrators.”

According to it, all three administrators have made good progress in implementing the principles related to governance, reflecting the primary focus of the reform process to date.

“In general, the administrators also have implemented the transparency and accountability principles. Further work is still needed on benchmarks’ methodology and design. Libor and Tibor administrators need to devote more attention to the management of conflicts of interests,” it added.

Source: Punch
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