In light of the significant issues raised by investigations into attempted
manipulation of benchmarks, in
particular the recent incidents
involving LIBOR, the International Organization of Securities
Commissions (IOSCO) has formed a Task Force
on Financial Market Benchmarks to
identify relevant benchmark-related
policy issues and develop global policy guidance and
principles for benchmark-related activities. The high level Task Force is
composed of members of the IOSCO Board and will be chaired by Martin Wheatley, Managing Director of the UK Financial Services
Authority, and CFCT Chair Gary Gensler.
The Task Force will take into account other relevant initiatives by
policymakers and stakeholders on benchmarks and serve as the IOSCO representative
in any other international work initiatives on benchmarking, with a view to
avoiding overlap or inconsistencies. As the global standard setter in the
securities area, IOSCO is committed to taking necessary steps to prevent the
manipulation of benchmarks and restore
confidence in the use of those benchmarks in global financial markets.
The mandate for the Task Force is to identify
benchmark-related issues across securities and derivatives, and other
financial sectors and define the types
of benchmarks that are relevant to financial markets. The Task Force will also identify
the relevant policy issues including, appropriate regulatory oversight of the
process of benchmarking, robust processes and procedures for benchmark
calculation, and credible governance structures to
address conflict of interests in the benchmark setting process and ensure transparency and openness in the benchmarking
process. Ultimattely, the Task Force
will develop global policy
guidance and principles, including those
related to effective self-regulation. In developing
policy guidance and principles for financial market benchmarks, the Task
Force will consider issues related to enforcement,
information sharing and sanctions regimes in coordination with IOSCO’s expert
committees.