Article 1
Conditions to ensure that the benchmark methodology is robust and reliable
1. A benchmark methodology as referred to in Article 12(1), point (a), of Regulation (EU) 2016/1011, shall:
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(a) |
be capable of representing the underlying market or economic reality that it seeks to measure and shall incorporate factors, including parameters and input data, that are most relevant to measure the underlying market; |
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(b) |
be subject to an assessment of the relationship between the key assumptions used and the sensitivity of the benchmark computed by that methodology; |
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(c) |
specify the nature of the input data used in the methodology; |
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(d) |
specify any criteria to be applicable in circumstances in which the quantity or quality of input data falls below the standards necessary for the methodology to determine the benchmark accurately and reliably. |
2. Administrators of non-significant benchmarks may choose not to apply paragraph 1, point (b), for those benchmarks.
3. Administrators of regulated-data benchmarks may choose not to apply paragraph 1, points (b) and (c), for those benchmarks.