IOSCO Issues Second Review of the Implementation of Principles for Financial Benchmarks

In a second review of progress toward implementation of IOSCO's Principles for Financial Benchmarks, the IOSCO Review Team found that the administrators of the Euro Inter-Bank Offer Rate ("EURIBOR"), London Inter-Bank Offer Rate ("LIBOR") and Tokyo Inter-Bank Offer Rate ("TIBOR") have "proactively engaged in addressing the issues raised" in IOSCO's July 2014 Review. IOSCO's Review Team reported that the majority of recommendations regarding principles on governance, transparency and accountability had been implemented by EURIBOR, LIBOR and TIBOR. The Review Team was made up of members of the IOSCO Board-level Task Force on Financial Market Benchmarks and the IOSCO Assessment Committee.

With regard to principles related to the quality of the benchmark, IOSCO noted Principles 6 (Benchmark Design) and 9 (Transparency of Benchmark Determination) were only partially implemented. The Review Team stated that there was "insufficient material provided to allow it to assess implementation" of Principle 7 (Data Sufficiency).