16 October 2023 – The circular addresses market participants, especially users of benchmarks under EU Regulation 2016/1011 (“BMR”). Benchmarks play a crucial role in determining financial instrument prices and measuring investment fund performance. The BMR aims to ensure benchmarks are representative, with potential consequences on market integrity and financial stability if they are not.
Malta Financial Services Authority (“MFSA”), as the competent authority for BMR supervision, requests market participants (excluding insurance intermediaries) to submit details on their exposure to critical benchmarks and other benchmarks in use. A form for this purpose is available via the provided link. Submission deadline is Friday, 01 December 2023. Only entities using benchmarks as of 30 September 2023 need to respond. Non-response will be considered as non-use of benchmarks for regulatory purposes.
The circular applies to all MFSA license holders across sectors (credit institutions, financial institutions, investment funds, etc.). MFSA, in the circular, reminded that the use of a benchmark includes various financial activities such as the issuance of financial instruments, the determination of amounts payable under contracts, being a party to financial contracts, providing borrowing rates, and measuring investment fund performance.
The full circular can be accessed here.
For more information on the BMR and implemented obligations for subject persons, free to contact us.
