Principles for Financial Benchmarks

By Rosa M. Abrantes-Metz on May 20, 2013

In this brief Comment to the OICU-IOSCO Consultation Report on Principles for Financial Benchmarks dated April 2013 , I provide suggestions on four main issues: transaction-based benchmarks, committed versus uncommitted quotes, data-clearing houses and the use of expert judgment.

In summary, it is my opinion that: a. Benchmarks based on committed quotes should be preferable to those based on uncommitted quotes; b. Benchmarks based on transactions are also susceptible of manipulation; c. Data-clearing houses should be requested for all benchmarks based on any types of quotes; and d. Expert judgment is necessary, but immediate disclosures around such judgment should be limited; more complete disclosures can be made later if there is a market need for them.

Read my full comment here: IOSCO April Report_Abrantes-Metz_May2013.

Rosa Abrantes-Metz, May 15, 2013

 

 

About the Author

Name
Rosa M. Abrantes-Metz
Title/Location
Managing Director, New York
Phone
917-499-4944
Expertise
antitrust/competition policy, financial regulation, securities