STOXX Limited is now compliant with the International Organisation of Securities Commission’s (IOSCO) principles for financial benchmarks.
The objective of the IOSCO principles for financial benchmarks is to create an overarching regulatory framework for benchmarks used in global financial markets.
The internationally valid guidelines focus on the methodology, transparency and overall quality of benchmarks, as well as the overall governance arrangements and accountability for index providers and other relevant bodies.
These principles intend to promote the reliability of benchmarks and have to be followed by providers globally, thus ensuring a uniform standard. Amongst others, one strong focus of the principles is set on conflicts of interest in the benchmark determination process, which is addressed by clear governance requirements.
“Since STOXX’s founding in 1998, we have always been known and valued in the market as a provider of neutral, transparent and strictly rules-based indices,” says Hartmut Graf, chief executive officer, STOXX Limited. “We strongly support the objectives of the IOSCO principles for financial benchmarks, and are pleased to declare our compliance with them. It is our aspiration to be a leader in best practice standards in our industry, and having a robust compliance framework for our indices is certainly an important part of this.”
