IHS Markit, a specialist in critical information, analytics and solutions, has been approved by the Financial Conduct Authority (FCA) as an authorised benchmark administrator under the European Benchmark Regulation (BMR), which aims to bring greater transparency and consistency to financial benchmarks.
This authorisation allows market participants to continue referencing the broad range of financial and commodity indices from IHS Markit under BMR. The FCA’s authorisation also confirms BMR compliance for IHS Markit Index Administration Services clients, and recognises independent benchmark administration as a valid alternative for self-administrators under BMR.
“Across our indices franchise, we strongly support the objectives of BMR in promoting the integrity and transparency of benchmark indices,” says Aram Flores, managing director and global co-head of financial indices at IHS Markit. “Financial institutions rely upon IHS Markit indices as the gold standard for market indicators, and as we continue to expand our leadership in this space, we will continue to deliver innovation and excellence.”
“IHS Markit has invested a significant amount of resources in BMR compliance, and when appointed as an independent benchmark administrator, we can provide a compliance alternative to clients, which allows them to retain ownership of their indices, and avoid inherent conflicts of interest,” says Mark Schaedel (pictured), managing director and head of Index Administration Services at IHS Markit. “In addition, as an independent administrator, IHS Markit can provide endorsement for non-European indices which require access to the EU market.”
IHS Markit provides a diverse set of proprietary benchmarks and tradable indices across assets, including iBoxx bond indices, iTraxx and CDX indices for credit default swaps, OPIS refined oil product indices and IHS McCloskey Coal indices used in commodity markets.
As an early adopter of the International Organization of Securities Commissions (IOSCO) principles for financial benchmarks, IHS Markit has committed to applying BMR protocols ahead of the regulation’s transitional period ending in 2020.