Two financial market regulators in the EU and in Australia have signed a memorandum of understanding regarding Australian benchmarks.
The announcement from the European Securities and Markets Authority (ESMA) and the Australian Securities and Investments Commission (ASIC) comes after a decision by the European Commission in July this summer.
The decision meant that some of the benchmarks made by ASIC would be immediately applicable in Europe. Those benchmarks were BBSW, S&P/ASX200, Bond Futures Settlement Price, CPI and Cash Rate.
The new memorandum means that the two marker regulators will work closer to ensure both financial watchdogs exchange data and coordinate their supervisory duties.
Commenting on the memorandum, James Shipton, the Chair of ASIC, said, “Enhancing and improving regulatory cooperation with our international counterparts is a priority for ASIC. We are very pleased to announce this agreement and look forward to our cooperation with ESMA in the future.
“Benchmarks play a vital role in cross-border financial transactions and international regulators need to work together to ensure their integrity and accuracy. When we provide mutual assistance to each other and exchange views and information, this helps ASIC to achieve its vision for a fair, strong and efficient financial system for all Australians.”
Steven Maijoor, ESMA Chair, added, “The use of financial benchmarks in global capital markets is important for market participants and their accuracy and reliability needs to be ensured at all times. In order to help regulators achieving these objectives, I am pleased that the ESMA-ASIC Memorandum of Understanding will support European regulators and ASIC to work together on a sound legal basis.”
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