Consultation Paper Draft technical advice under the Benchmarks Regulation

27 May 2016 | ESMA/2016/723

Date: 27 May 2016 ESMA/2016/723

Responding to this paper ESMA invites comments on all matters in this paper and in particular on the specific questions summarised in Annex 1. Comments are most helpful if they: •

respond to the question stated;

•

indicate the specific question to which the comment relates;

•

contain a clear rationale; and

•

describe any alternatives ESMA should consider.

ESMA will consider all comments received by 30 June 2016. All contributions should be submitted online at www.esma.europa.eu under the heading ‘Your input - Consultations’. Publication of responses All contributions received will be published following the close of the consultation, unless you request otherwise. Please clearly and prominently indicate in your submission any part you do not wish to be publically disclosed. A standard confidentiality statement in an email message will not be treated as a request for non-disclosure. A confidential response may be requested from us in accordance with ESMA’s rules on access to documents. We may consult you if we receive such a request. Any decision we make not to disclose the response is reviewable by ESMA’s Board of Appeal and the European Ombudsman. Data protection Information on data protection can be found at www.esma.europa.eu under the heading Legal Notice. Who should read this paper This paper may be specifically of interest to administrators of benchmarks and to any investor dealing with financial instruments and financial contracts whose value is determined by a benchmark or with investment funds whose performances are measured by means of a benchmark.

ESMA • CS 60747 – 103 rue de Grenelle • 75345 Paris Cedex 07 • France • Tel. +33 (0) 1 58 36 43 21 • www.esma.europa.eu

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Table of Contents 1

Executive Summary ....................................................................................................... 5

2

Technical Advice on some elements of the Definitions in Article 3 .................................. 7 2.1

Specification of what constitutes making available to the public .............................. 8

2.2

Draft Technical Advice: “making available to the public” .........................................14

2.3 Specification of what constitutes administering the arrangements for determining a benchmark ........................................................................................................................15 2.4 Draft Technical Advice: “administering the arrangements for determining a benchmark” .......................................................................................................................17 2.5 Specification of what constitutes the issuance of a financial instrument for the purposes of defining ‘use of a benchmark’ ........................................................................18 2.6 3

4

5

6

Draft Technical Advice: “issuance of a financial instrument” ...................................21

Technical Advice on the measurement of the reference value of a benchmark .............22 3.1

Framework .............................................................................................................22

3.2

Nominal amount of financial instruments other than derivatives .............................23

3.3

Notional amount of derivatives ...............................................................................26

3.4

Net asset value of investment funds .......................................................................27

3.5

Other issues ......................................