February 2013

LSEG Response to the IOSCO Consultation report on Financial Benchmarks

The London Stock Exchange Group has provided a response to the IOSCO consultation report on financial benchmarks. In our response we make the following points:

• We agree with the characteristics that IOSCO considers benchmarks should have in order to be considered credible.
• There should not be a “one size fits all” approach to regulation, which should be calibrated according to the types of index, its application, use and compilation method.
• Regulation is likely to be required for those benchmarks such as LIBOR where market confidence has been severely damaged. For other benchmarks, it is sufficient to have an industry code of conduct drawn up by an appropriate industry body that is submitted, to and approved by, the relevant Regulatory Authority.
• The introduction of a register of benchmarks that follow IOSCO principles could be a useful signaling device to end investors and encourage index providers to apply the appropriate standards.

LSEG Response to the IOSCO Consultation Report on Financial Benchmarks (file pdf - 372 KB)