ESMA_QA_732

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/732


Regulatory Context

Regulation : BMR

Level 1 Regulation: Benchmarks Regulation (BMR) - Regulation 2016/1011

Level 2 Regulation: No information available

Level 3 Regulation: No information available

Topic: Benchmarks Regulation

Subject Matter: Regulated data benchmarks (ESMA70-145-114 Q&A_5.7)


Question

Submission Date: 29 March 2023

Can a benchmark qualify as a ‘regulated-data benchmark’ if a third party is involved in the process of obtaining the data?


ESMA Answer

Answer Date: 11-07-2018

The BMR subjects the provision of regulated-data benchmarks to fewer requirements, given that the input data stems entirely from sources which are themselves subject to regulation. The notion of “entirely and directly” in Article 3(1)(24)(a) precludes, in principle, the involvement of any third party in the data collection process. The data should be sourced entirely and directly from a trading venue without the involvement of third parties, even if these third parties function as a pass-through and do not modify the raw data. However, pursuant to Article 3(1)(24)(a)(vii), if an administrator obtains regulated data through a third party service provider (such as a data vendor) and has in place arrangements with such service provider that meet the outsourcing requirements in Article 10 of the BMR, the benchmark still qualifies as regulated-data benchmark.


This document was automatically extracted from the ESMA EMIR Q&A database.