EBA欧洲银行-EBA-BS-2013-001Euribor-Recommendations-to-EBFfinal_4页_166kb

Euribor Governance and Transparency Recommendations Summary

Core Content

This document outlines a set of recommendations issued by the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) to the Euribor-EBF board. These recommendations aim to improve the governance, transparency, and reliability of the Euribor benchmark, which is a key reference rate in the euro area for financial transactions.

Main Recommendations

The following are the key recommendations made by EBA and ESMA:

1. Governance Improvement

   • The Euribor Steering Committee must be restructured to increase independence and diversity.
   • Non-panel bank members should be included in the committee to provide a counterbalance.
   • The number of panel bank members should be reduced to a minority.
   • Membership details, conflict of interest declarations, and election processes should be publicly disclosed.

2. Meeting and Transparency

   • The Steering Committee should hold at least one bi-monthly meeting.
   • Minutes of these meetings must be published promptly to ensure transparency.

3. Rate Maturity Reduction

   • The number of Euribor tenors should be reduced from 15 to no more than 7.
   • The focus should be on the most frequently used maturities.
   • This change would simplify the submission process without compromising financial stability.

4. Definition Clarity

   • The definition of Euribor should be made more precise.
   • Terms such as "prime bank" and "interbank transactions" need clear definitions.
   • The term "interbank transactions" may need to be broadened for better applicability.

5. Data Quality Responsibility

   • Euribor-EBF should take direct responsibility for the quality of data submitted by panel banks.
   • Regular and consistent back-testing of quoted rates should be conducted, with results reported to the Steering Committee.

6. Code of Conduct and Conflict Management

   • Euribor-EBF and the Steering Committee should adopt a new, enhanced Code of Conduct.
   • This code should include mechanisms for identifying and managing conflicts of interest at various levels.
   • Sanctions for breaches should be clearly defined and enforced.

7. Internal and External Audits

   • Euribor-EBF should conduct internal audits.
   • External audits should be carried out periodically, with results made public.
   • The calculation agent (currently Thomson Reuters) should also undergo regular internal and external audits.

8. Submission Record Keeping

   • Euribor-EBF and the calculation agent should maintain detailed, transparent records of all submissions from panel banks.
   • These records should include data on non-submission or flawed submissions over time.
   • A record of individuals responsible for submissions within banks should be maintained.

9. Implementation Review

   • EBA and ESMA aim to review the implementation of the recommendations within six months of their agreement by Euribor-EBF.

Key Information

• Recommendations are not a formal enforcement action but are based on a joint review by EBA and ESMA.
• The document highlights governance weaknesses at multiple levels, including the Steering Committee and the panel banks.
• Transparency and accountability are emphasized throughout the recommendations.
• The continuity of Euribor is a concern, especially in light of potential bank exits from the panel.
• The calculation agent (Thomson Reuters) is identified as a key entity that needs clearer guidelines and oversight.
• The need for structural changes in the framework of financial benchmarks is acknowledged, though the recommendations focus on immediate actions.

Conclusion

EBA and ESMA have identified critical issues in the current governance and operational framework of Euribor and have proposed a series of immediate actions to enhance transparency, accountability, and reliability. These recommendations are intended to support the continued use of Euribor as a credible benchmark in financial markets and to contribute to overall financial stability.