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EU BENCHMARKS

REGULATION

 

20TH FEBRUARY 2019

LONDON, UK

 

 

 
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ABOUT THE BENCHMARKS REGULATION

The ‘Benchmarks Regulation’[1] seeks to introduce a common framework to ensure the accuracy and integrity of indices used as benchmarks in financial instruments and financial contracts, and to measure the performance of investment funds in the European Union (EU). Some of the key focus points are to ensure that administrators manage and potentially avoid conflicts of interest, there is an improved quality of input data and methodologies used by administrators, and there is an overall improved framework pertaining to benchmark governance and controls. Although the Benchmarks Regulation took effect on 1st January 2018, transitional provisions means that it will not be fully effective until 1st January 2020. During such period Third Country Administrators will need to evaluate their operations in order to decide whether or not to seek authorisation in the post-2020 framework, as well as their use of Third Country Benchmarks in existing and new contracts for financial instruments.

 

ABOUT THE TRAINING COURSE

This one day beginner to intermediate training course seeks to provide attendees with highly comprehensive instruction on the new Benchmarks Regulation operational framework. It will set out the development and introduction of the Benchmarks Regulation, as well as the Level 1, Level 2, and Level 3 operational framework. The Expert Trainer will guide attendees through the technical requirements for different types of benchmarks as well as providing contextual analysis and examples. By attending the training course attendees will be able to avail themselves of a unique applied learning approach through a blended mix of legal, technical, operational, strategic, and technological perspectives. The training course will provide a highly cost effective way of comprehensively understanding this broad and complex framework EU regulatory framework.


[1]    Regulation (EU) 2016/1011 of 8th June 2016 on indices to be used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds.

 
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KEY BENEFITS

· Attendees will be expertly trained in all the most relevant areas covering the Benchmarks Regulation regulatory compliance framework.

· Attendees will be provided with an examination of the latest global Benchmarks Regulation strategic implications.

· Attendees will benefit from a much more in-depth understanding of Third Country Benchmarks, as well as a comprehensive understanding of the offerings from Benchmarks Service Providers.

· Attendees will benefit from highly comprehensive training course manual, training course supporting materials manual, and four PowerPoint presentations.

 

PROGRAMME

 

SESSION 1: An Introduction to the Benchmarks Regulation

·       The LIBOR Scandal, the Wheatley Review, and Background to the Benchmarks Regulation.

·       The Benchmarks Regulation Framework (Level 1 Framework, Level 2 Framework, Level 3 Framework).

·       Authorisation, Registration and Supervision of Administrators (Authorisation, Withdrawal, Suspension, Register).

·       Supervisory Cooperation (National Competent Authorities (NCAs), Disclosure of Information, On-Site Inspections and Investigations), Role and Powers of NCAs, Administrative Sanctions and Measures.

 

SESSION 2: Requirements for Different Types of Benchmarks

·       Definitions of Regulated-data Benchmarks (RDBs), Interest Rate Benchmarks (IRBs), and Commodity Benchmarks (CoBs), and Practical Examples.

·       Critical Benchmarks (CBs) (Definition, Mandatory Administration, Mitigation of Market Power, Mandatory Contribution, Practical Examples).

·       Significant Benchmarks (SBs) (Definition, Exemptions from Specific Requirements, Practical Examples).

·       Non-Significant Benchmarks (NSBs) (Definition, Practical Examples).

 

SESSION 3: Transparency, Consumer Protection, the Third Country Benchmarks Framework and Benchmarks Guidance

·       Administrators, Outsourcing, Contributors, Supervised Contributors, Mandatory Contributions, Input Data, Use of a Benchmark.

·       Benchmark Statement, Changes to and Cessation of a Benchmark, Equivalence, Recognition of an Administrator located in a Third Country, Endorsement.

·       A Review of The European Securities and Markets Authority (ESMA) and European Banking Authority (EBA) Principles for benchmark-setting processes in the EU (June 2013).

·       A Review of IOSCO’s Principles for Financial Market Benchmarks (July 2013).

 

SESSION 4: Benchmarks Operations

·       A Review of the Global Impact of the Benchmarks Regulation (e.g. Asia Pacific Region (APAC), Market Liquidity and Fragmentation, Concentration Risk, Hedging Risk, Contractual and Funding Issues, Market Power and Access, Market Expectations and Reputational Risk).

·       A Strategic Review of the Impact of the Benchmarks Regulation on Asset Managers and Investment Funds.

·       A Strategic Review of the Impact of the Benchmarks Regulation on Structure Finance and Securitization of Transactions.

·       A Review of Benchmarks Service Providers (e.g. Refinitiv, IHS Markit).


WHO IS THE COURSE SUITABLE FOR?

• Compliance Analysts.

• Compliance Officers.

• Front Office Professionals.

• Heads of Compliance.

• Heads of Operations.

• Heads of Risk.

• Hedge Fund Professionals.

• Investment Fund Professionals.

• Investment Managers.

• Lawyers.

• Regulatory Analysts.

• Risk Officers.

 

TRAINING COURSE EXPERT TRAINER PROFILE

Rodrigo Zepeda is Co-Founder and Managing Director of Storm-7 Consulting. He is an expert consultant who specialises in derivatives and banking and financial services law, regulation, and compliance. He is an expert in a very broad range of regulatory compliance frameworks such as FATCA, the OECD CRS, MiFID II, MAD 2 MAR, PSD2, CRD IV, Solvency II, OTC Derivatives, CCP Clearing, PRIIPs, BRRD, AML4, and the GDPR. He holds a LLB degree, a LLM Masters degree in International and Comparative Business Law, and has passed the New York Bar Examination. He was an Associate (ACSI) of the Chartered Institute for Securities & Investment from 2004 to 2014 and is now a Chartered Member (MCSI). He has created and delivered numerous conferences and training courses around the world such as 'FATCA for Latin American Firms' (Santo Domingo, Dominican Republic, Panama City, Panama), 'MiFID II: Regulatory, Risk, and Compliance (London), and 'Market Abuse: Operational Compliance' (London), 'AEOI (FATCA & CRS)' (Manama, Bahrain). He has also delivered numerous In-House Training Courses around the world to major international financial institutions such as The Abu Dhabi Investment Authority (MiFID II: Operational Compliance, Abu Dhabi, the United Arab Emirates), the United Nations Principles of Responsible Investment (MiFID II: Final Review, London), CAF, the Development Bank of Latin America (Swaps and Over-the-counter Derivatives, Lima, Peru), Rothschild Investment Management (UK) Limited (AEOI (FATCA & CRS), London) and Bethmann Bank AG (MAD 2 MAR, Frankfurt). He is a Reviewer for the Journal of Financial Regulation and Compliance and has also published widely in leading industry journals such as the Capco Institute's Journal of Financial Transformation, the Journal of International Banking Law and Regulation, as well as e-books on derivatives law. Noted publications include "Optimizing Risk Allocation for CCPs under the European Market Infrastructure Regulation"; "The ISDA Master Agreement 2012: A Missed Opportunity"; "The ISDA Master Agreement: The Derivatives Risk Management Tool of the 21st Century?"; "To EU, or not to EU: that is the AIFMD question"; and "The Industrialization Blueprint: Re-Engineering the Future of Banking and Financial Services?".

 
 
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