(1)

It should be ensured that the detection of benchmark manipulation or attempted manipulation is effective and adequate. It is therefore necessary that the systems and controls of a benchmark administrator are proportionate to the nature, the complexity and the risk of manipulation of the benchmark provided and that the risk of manipulation is evaluated on the basis of an objective assessment which takes into account the origin, nature, peculiarity and severity of such risk.

(2)

In order to ensure that the detection of any conduct that may involve manipulation or attempted manipulation of a benchmark is effective, it is necessary to provide for appropriate automated systems to monitor input data. However, automated systems alone are not sufficient to ensure that manipulative behaviour is effectively detected. Automated systems should therefore be complemented by an appropriate level of human analysis to be carried out by appropriately trained staff.

(3)

To ensure that competent authorities can effectively assess measures taken to identify and report misconduct, administrators should, upon request, provide the competent authority with information on the nature, complexity and risk of manipulation of the benchmark concerned, and substantiate the appropriateness of the level of automation and human analysis chosen.

(4)

The employees of a benchmark administrator that are in charge of operating the administrator’s systems and controls should receive appropriate training to enable them to analyse whether or not a given data input is suspicious. Such training should ensure that those employees are aware of the features of proper input data submission and of discrepancies in input data potentially caused by manipulation or attempted manipulation. Effective training should be tailored to the nature, complexity and risk of manipulation of the benchmark provided.

(5)

Administrators may prefer to outsource functions related to the systems and controls. Such outsourcing should only be possible to the extent it does not materially impair the administrator’s control over the provision of the benchmark or the ability of the relevant competent authority to supervise the benchmark, and is in any case subject to the requirements of Article 10 of Regulation (EU) 2016/1011.

(6)

This Regulation is based on the draft regulatory technical standards submitted to the Commission by the European Securities and Markets Authority (ESMA).

(7)

ESMA has conducted open public consultations on the draft regulatory technical standards on which this Regulation is based, analysed the potential related costs and benefits and requested the advice of the Securities and Markets Stakeholder Group established in accordance with Article 37 of Regulation (EU) No 1095/2010 of the European Parliament and of the Council (2).

(8)

In order to ensure consistency with the date of application of Article 5 of Regulation (EU) 2019/2175 of the European Parliament and of the Council (3), which introduced in Regulation (EU) 2016/1011 Article 14(4) of that Regulation, this Regulation should apply from 1 January 2022,