TITLE IIIU.K.REQUIREMENTS FOR DIFFERENT TYPES OF BENCHMARKS

CHAPTER 4U.K.Critical benchmarks

[F1 Article 22A U.K. Assessment of representativeness of critical benchmarks: administrator

1.This Article applies to a critical benchmark that—

(a)is based on submissions by contributors the majority of which are supervised entities or supervised third country entities, and

(b)is not an Article 23A benchmark.

2.An administrator of a critical benchmark must submit to the FCA an assessment of the capability of the benchmark to measure the underlying market or economic reality—

(a)at the end of the period of two years beginning with the day on which the benchmark became a critical benchmark, and

(b)at the end of each subsequent two year period.

3.The FCA may, by written notice, require an administrator of a critical benchmark to submit to the FCA an assessment of the capability of the benchmark to measure the underlying market or economic reality.

4.The FCA may only impose a requirement under paragraph 3 if it considers that—

(a)the benchmark does not, or may not, represent the underlying market or economic reality, or

(b)the representativeness of the benchmark is or may be at risk.

5.A notice under paragraph 3 may require the administrator to submit the assessment before a date specified in the notice, provided that date falls after the end of the period of two weeks beginning with the day on which the notice was given.

6.If a supervised contributor or a supervised third country contributor intends to cease contributing input data to a critical benchmark—

(a)the contributor must notify the benchmark administrator promptly in writing, and

(b)the notification must state the date on which it intends to cease contributing, which must be after the end of the period of 15 weeks beginning with the first working day after the day on which it gives the notification.

7.If an administrator of a benchmark is notified under paragraph 6, it must—

(a)inform the FCA promptly, stating the date on which the notification was given, and

(b)submit to the FCA an assessment of the implications of the contributor's withdrawal for the capability of the benchmark to measure the underlying market or economic reality.

8.An assessment under paragraph 7(b) must be submitted to the FCA before the end of the period of 14 days beginning with the first working day after the day on which the notification under paragraph 6 was given.

9.An administrator of a critical benchmark that is required to provide an assessment under this Article must not change the market or economic reality intended to be measured by the benchmark (as defined in the benchmark statement referred to in Article 27) during the assessment period, unless the FCA gives it written permission to do so.

10.For the purposes of paragraph 9, the assessment period begins—

(a)in the case of an assessment under paragraph 2, with the day falling one month before the end of the relevant two year period described in that paragraph;

(b)in the case of an assessment under paragraph 3, when the administrator receives the FCA's notice requiring the assessment;

(c)in the case of an assessment under paragraph 7(b), when the contributor notifies the administrator under paragraph 6.

11.For the purposes of paragraph 9, the assessment period ends—

(a)when the FCA notifies the administrator that it considers that the representativeness of the benchmark is not at risk, whether by giving a notice under Article 22B(3)(b) or otherwise, or

(b)when the benchmark becomes an Article 23A benchmark.]

Textual Amendments