ESMA updates its Q&As regarding the Benchmark Regulation

On 27 September 2018, the European Securities and Markets Authority (ESMA) updated its Questions and Answers (Q&As) on the Benchmarks Regulation (BMR).

The updated BMR Q&As provided new clarifications regarding the following topics: 

• When the written plan to be produced by users of benchmarks should be considered robust and how such plans should be reflected in the contractual relationship with clients;
• The reference to systematic internaliser in the definition of financial instruments;
• When banks issuing certificates classify as users of benchmarks;
• Why NAV of investment funds should be considered input data and not benchmarks;
• The application for endorsment of family of benchmarks;
• The language of benchmark statements.

The purpose of these Q&As was to promote common supervisory approaches and practices in the application of BMR. It aims at providing investors and other market participants with clarifications on the applicable requirements.ESMA will periodically review these Q&As and update them where required.