
Contents
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Benchmark Design Benchmark Design
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Stock Indexes Stock Indexes
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Other Asset-Based Indexes Other Asset-Based Indexes
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Interest Rate Indexes Interest Rate Indexes
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Benchmark Products Benchmark Products
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Sponsorship Sponsorship
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Secondary Market Trading Secondary Market Trading
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Justification for Regulation Justification for Regulation
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Integrity of Benchmark Inputs Integrity of Benchmark Inputs
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Integrity of Benchmark Calculation Integrity of Benchmark Calculation
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Competition among Benchmark Products and Markets Competition among Benchmark Products and Markets
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Regulation of Benchmarks Regulation of Benchmarks
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Governance and Accountability Governance and Accountability
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Composition, Inputs, and Calculation Composition, Inputs, and Calculation
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Listing of Benchmark Contracts Listing of Benchmark Contracts
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Cite
Abstract
This chapter provides an overview of the regulation of benchmarks and benchmark products. It begins with a discussion of the types of benchmarks used in financial markets, such as stock, debt and other asset-based indexes and interest rate indexes, such as LIBOR. It continues with a discussion of US case law and regulation governing the commercial use of benchmarks in designing and trading financial products, such as derivatives and exchange-traded funds. It then discusses regulatory concerns regarding the integrity of benchmark inputs, the calculation of benchmarks, and competition among benchmark products and markets. It ends with a discussion of approaches to regulating benchmark administration, governance and submissions, as well as the role of exchanges and regulators in the listing of benchmark contracts.
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