Updated 22/10/2024
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BMR ToolDelegated Regulation 2021/1349
Article 1

Article 1 - Criteria for assessing the transition to a new administrator

Article 1

Criteria for assessing the transition to a new administrator

Competent authorities shall, when assessing how a critical benchmark is to be transitioned to a new administrator, consider all of the following criteria:

(a)

whether the new administrator proposed in the assessment submitted by the current administrator pursuant to Article 21(1), point (b)(i), of Regulation (EU) 2016/1011:

(i)

is located in the same Member State as the current administrator, or in a different Member State in which case the competent authority, where necessary, shall cooperate with the competent authority of the Member State of the new administrator to assess whether the supervision of the critical benchmark will be ensured throughout the transition to the new administrator;

(ii)

is a supervised entity and, if so, for which activities it is supervised, and whether there are any actual or potential conflicts of interest with that entity’s existing activities;

(iii)

is a user of the benchmark and, if so, whether the conflicts of interest that may arise are adequately mitigated;

(iv)

is already authorised as a benchmark administrator under Article 34 of Regulation (EU) 2016/1011;

(v)

already provides benchmarks, and if so, whether those benchmarks are critical, significant, non-significant, commodity or interest rate benchmarks;

(b)

whether the current administrator of the critical benchmark has informed any contributors, users and other stakeholders or has conducted public consultations about the possible transition of the critical benchmark to the new administrator;

(c)

the way in which the new administrator intends to calculate the critical benchmark and whether that administrator intends to amend any of the following elements related to the critical benchmark and, if so, how the administrator will ensure the compliance of those elements with Regulation (EU) 2016/1011:

(i)

the methodology, including the quality of the input data, and its review;

(ii)

the contingency policy for the calculation of the benchmark;

(iii)

the procedures for handling errors in input data or in the redetermination of the benchmark;

(iv)

the code of conduct;

(d)

whether the new administrator will have access to the same input data as the current administrator, including historical input data held by the current administrator;

(e)

whether the IT infrastructures of the new administrator have been adequately tested for the provision of the critical benchmark;

(f)

where the critical benchmark is based on input data contributed by a panel of contributors, how the new administrator intends to fulfil the requirement set out in Article 11(1), point (d), of Regulation (EU) 2016/1011 and whether the current contributors will continue to be part of the panel after the benchmark’s transition to the new administrator;

(g)

the way in which the new administrator intends to publish the critical benchmark, including the standard daily publication arrangements, the frequency of publication, the address of the website and whether critical benchmark will be accessible upon payment of a fee or free of charge;

(h)

whether there is detailed plan for the transition date, and if so, whether that plan deals with all possible issues, including contractual issues, stemming from the transition of the critical benchmark to a new administrator;

(i)

legal risks involved in the transition, including the risk of contract frustration;

(j)

the accounting and tax implications of the critical benchmark being provided by a new administrator;

(k)

the impact of the transition on financial market infrastructures, including clearing houses.