March 2016

Financial Benchmarks Regulatory Reform

In March 2016, the Council of Financial Regulators (CFR) released the Consultation Paper: Financial Benchmarks Regulatory Reform. The consultation paper set out regulatory reform proposals relating to the administration of significant benchmarks, submission to significant benchmarks, and offences applying to benchmark misconduct. Any changes requiring legislative reform will ultimately be a matter for the Government to consider.

Financial benchmarks are of critical importance to a wide range of users in financial markets and throughout the broader economy. The proposed reforms can help to ensure the robustness and reliability of financial benchmarks in the Australian economy and to promote continued confidence in Australia's financial markets.

The CFR's proposals for regulatory reform were guided by the IOSCO Principles for Financial Benchmarks and by the recommendations of the Financial Stability Board with regards to FX benchmarks and interest rate benchmarks. They are also informed by reforms proposed or implemented in foreign jurisdictions.

This consultation closed on 29 April 2016.

For further details, please see the CFR consultation paper: Financial Benchmarks Regulatory Reform

On 23 August 2016, the CFR submitted to the Government its recommended approach to reforming the regulation of financial benchmarks. On 4 October 2016, the Treasurer released the CFR's recommendations along with the Government's response. For further details, please see the Treasurer's media release.

Submissions Received

Argus Media
25 April 2016

ASX Group
9 May 2016

Australian Financial Markets Association
9 May 2016

FIA, ISDA, ASIFMA joint submission
29 April 2016

Global Rate Set Systems
29 April 2016

29 April 2016

Index Industry Association
29 April 2016

London Stock Exchange Group
29 April 2016

29 April 2016

30 April 2016

S&P Global Inc.
29 April 2016

Stockbrokers Association of Australia
20 April 2016

28 April 2016

Thomson Reuters
28 April 2016

Confidential Submissions

The CFR also received 5 confidential submissions.