Benchmarks Regulation & Structural Changes to Deutsche Börse Group’s Index business
EU Benchmarks Regulation
The EU Benchmarks Regulation applies since 1 January 2018 and affects both EU and non-EU entities that administer indices that are used in the EU as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds. In the UK, after ‘Brexit’, the administration and use of financial benchmarks will be subject to UK legislation. However, UK legislation replicates the EU Benchmarks Regulation.
Established EU as well as non-EU administrators are granted a transitional period of two years – both in the EU and the UK. This means that customers of STOXX Ltd. (STOXX) may use existing and new STOXX indices until 1 January 2020 in accordance with the applicable transitional provisions, even if STOXX indices are not yet included in the ESMA Benchmarks Register.
STOXX has applied for recognition according to Art. 32 of the Benchmarks Regulation with the National Competent Authority to obtain the registration of the indices administered by STOXX into the ESMA Benchmarks Register.
In addition, in the interest of all market participants, the European Parliament has approved amendments to the EU Benchmarks Regulation on 17 April 2019, which foresee a new transitional period for third country benchmarks until 31 December 2021. STOXX does, however, not intend to make use of these provision.
Built on a solid foundation including a strong governance structure and rigorous operational and IT processes, STOXX benchmarks offer the assurance of accuracy and integrity which saw us being compliant with IOSCO Principles for Financial Benchmarks, the global standard provision of benchmarks, since before the EU Benchmarks Regulation became effective. STOXX is audited against the IOSCO Principles for Financial Benchmarks by independent auditors on a yearly basis.
Transfer of administration of Deutsche Börse AG’s indices
In an effort to realize synergies within Deutsche Börse Group's index business, Deutsche Börse AG (DBAG) intends to transfer its index administrator role (as defined under the EU Benchmarks Regulation) in relation to DBAG’s indices (DAX, eb.rexx, etc.) to STOXX. This transfer will not affect customers' contractual relationships with DBAG.
Implications of Axioma acquisition
In the context of the acquisition of Axioma Inc., DBAG’s index business is intended to be transferred to a new company within Deutsche Börse Group. This does not affect the transfer of the administrator role from DBAG to STOXX as described above.
The Axioma transaction is subject to approval by the relevant competition authorities and further customary conditions and is expected to close in the third quarter 2019.
Deutsche Börse Group will review the impact for current DBAG index customers (incl. contractual relationships, connectivity, etc.) going forward and will approach them when the need arises.
More details about the Axioma transaction is available here.
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|Declarations of Compliance||Download|
|Press Release July 31, 2014|
|IOSCO Letter of Compliance|
|IOSCO and ESMA-EBA|
|Information on Managing Conflicts of Interests within STOXX Ltd|
|Input Data Policy|
|IOSCO and ESMA-EBA Compliance Audit Report – For 2017|
|IOSCO and ESMA-EBA Compliance Audit Report – For 2016|
|IOSCO and ESMA-EBA Compliance Audit Report – For 2015|
|IOSCO and ESMA-EBA Compliance Audit Report – For 2014|