Article 5
Standards guiding how a benchmark may be proven to be new
1. When establishing whether a new benchmark meets the criteria set out in points (a) and (b) of Article 37(2) of Regulation (EU) No 600/2014, a person with proprietary rights to a benchmark shall take the following standards into account:
|
(a) |
whether contracts based on the more recent benchmark are not capable of being netted nor substantially offset with contracts based on the relevant existing benchmark by a CCP; |
|
(b) |
whether the regions and industry sectors covered by the relevant benchmarks are not the same, nor similar; |
|
(c) |
whether the values of the relevant benchmarks are not highly correlated; |
|
(d) |
whether composition of the relevant benchmarks, having regard to the number of constituents, the actual constituents, their values and their weightings are not the same, nor similar; |
|
(e) |
whether the methodologies of each relevant benchmark are not the same, nor similar. |
2. For commodity benchmarks, in addition to the standards specified in paragraph 1, the following additional standards shall be taken into account:
|
(a) |
whether the relevant benchmarks are not based on the same underlying commodities; |
|
(b) |
whether the delivery locations of the underlying commodities are not the same. |
3. In addition to the standards specified in paragraphs 1 and 2, a person with proprietary rights to a benchmark shall take into account further standards in use specific to the types of benchmarks being assessed, as appropriate.
4. A newly released series of a benchmark shall not constitute a new benchmark.