Markit has confirmed that it will administer its benchmarks in compliance with the International Organization of Securities Commissions (IOSCO) final report on Principles for Financial Benchmarks.
The IOSCO principles aim to create an overarching framework for benchmarks used in financial markets to be implemented by benchmark administrators and submitters as a way of promoting the reliability of benchmark determinations and to address benchmark governance, quality and accountability mechanisms.
Markit is expecting to administer its benchmarks in compliance with the principles by the end of 2014 and will focus on transparency, controls, governance and conflicts of interest management.
Armins Rusis, managing director and co-head of information at Markit, said: “Markit fully supports the IOSCO Principles and evolving regulations regarding benchmark administration, which are consistent with the objectivity, transparency and governance by which Markit has always sought to administer its indices and underscores their independence and objectivity.”
“Our new compliance framework will help our customers and contributors to efficiently and comprehensively adhere to the IOSCO requirements. After extensive consultation with customers, we intend to apply the same approach to our custom index business which provides customers with indices of their own design.”
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