ESMA_QA_743

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/743

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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: Methodology

Subject Matter: Methodology and input data (ESMA70-145-114_Q&A 5.13)

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Question

Submission Date: 31 March 2023

Can the methodology of a regulated-data benchmark include factors that are not covered by Article 3(1)(24) BMR?

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ESMA Answer

Answer Date: 18-12-2018

Article 3(1)(24) BMR defines a regulated-data benchmark as a benchmark determined by the application of a formula from specific input data. Thus, regulated-data benchmarks cannot include input data that are not covered by this definition. However, the methodology of a regulated-data benchmark can include factors that are not covered by Article 3(1)(24) BMR only if those factors are not considered input data i.e. they do not measure the underlying market or economic reality that the benchmark intends to measure, but instead are elements that improve the reliability and representativeness of the benchmark (see Q&A: ESMA_QA_738 or ESMA70-145-114_Q&A 5.12).

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