Integrity and reliability
With BMR-compliance as an objective, the European Money Markets Institute has successfully taken on actions as early as 2015 to ensure Euribor’s continued sustainability, reliability, and integrity. In this regard, the benchmark was considerably strengthened by putting in place a rock-solid Governance Framework consisting of effective control and oversight arrangements for the Administrator, for the contributors, and for the Calculation Agent.
The European Money Markets Institute is fully compliant with the EU Benchmarks Regulation. BMR authorisation is synonymous with the highest degree of transparency and integrity. It also confirms that the methodology for Euribor® is robust, resilient, and representative of its underlying market.
As the administrator of Euribor®, the European Money Markets Institute is duly supervised by the Financial Services and Markets Authority (FSMA). The European Securities and Markets Authority (ESMA) will substitute the FSMA in January 2022.
The Euribor® Governance Framework entails:
- The Euribor® Governance Code of Conduct, setting out all governance, control, and accountability frameworks for the provision of Euribor®
- The Euribor® Code of Obligations of Panel Banks, setting out uniform standards and obligations for the Panel Banks with regard to the provision of input data contributions for the determination of Euribor®
- The Euribor® Code of Obligations of the Calculation Agent, setting out the requirements for the Calculation Agent in acting as a sub-contractor of The European Money Markets Institute for the determination of Euribor®
- The Benchmark Determination Methodology for Euribor®, setting out the determination methodology for the calculation of Euribor® under both regular and contingency circumstances
The Euribor® Governance Framework is furthermore supported by a set of policies and procedures covering all aspects related to the provision of the benchmark.
An Oversight Committee of market experts supervises the application of the Governance Framework for Euribor®. The Oversight Committee is an independent body established by The European Money Markets Institute that exercises an unbiased oversight of all aspects related to the provision of Euribor®.
Click here to read about the Oversight Committee members.
Click here to read the Terms of Reference of the Oversight Committee.
Click here to read The Minutes of the Oversight Committee meetings.
Data Transmission and Validation under the Hybrid Methodology
Euribor Methodology Governance | April 2019
Terms of Reference of the Oversight Committee
Euribor Governance Oversight Committee | December 2018