1This chapter applies to every firm which is a benchmark submitter or a benchmark administrator.

A contravention of a rule in MAR 8 does not give rise to a right of action by a private person under section 138D(2) of the Act (and each rule in MAR 8 is specified under section 138D(3) of the Act as a provision giving rise to no such right of action).

A benchmark submitter must establish and maintain adequate and effective organisational and governance arrangements for the process of making benchmark submissions.

A benchmark submitter who maintains an establishment in the United Kingdom must:

1. (1)

   appoint a benchmark manager with responsibility for the oversight of its compliance with this chapter; and

2. (2)

   ensure that its benchmark manager has a level of authority and access to resources and information sufficient to enable him to carry out that responsibility.

A benchmark submitter must:

1. (1)

   ensure that its benchmark submissions are determined using an effective methodology to establish the benchmark submission on the basis of objective criteria and relevant information; and

2. (2)

   review this methodology as and when market circumstances require, but at least every quarter, to ensure that its benchmark submissions are credible and robust.

A benchmark submitter must maintain and operate effective organisational and administrative arrangements to enable it to identify and manage any conflicts of interest that may arise from the process of making benchmark submissions.

A benchmark submitter who suspects that any person

1. (1)

   is manipulating, or has manipulated, a specified benchmark;

2. (2)

   is attempting, or has attempted, to manipulate a specified benchmark; or

3. (3)

   is colluding, or has colluded, in the manipulation or attempted manipulation of a specified benchmark;

must notify the FCA without delay.

A benchmark submitter must:

1. (1)

   keep for at least five years:

   1. (a)

      records of its benchmark submissions, as well as all information used to enable it to make a benchmark submission; and

   2. (b)

      reports on the key sensitivities the benchmark submitter may have regarding the specified benchmark it is submitting to, including (but not limited to) the benchmark submitter's exposure to instruments which may be affected by changes in the specified benchmark;

2. (2)

   provide to the relevant benchmark administrator all information used to enable it to make a benchmark submission on a daily basis; and

3. (3)

   provide to the relevant benchmark administrator, on a quarterly basis, aggregate information which will allow the benchmark administrator to produce statistics relevant to the specified benchmark as required by MAR 8.3.12 R.

A benchmark submitter must appoint an independent auditor to report to the FCA on the benchmark submitter's compliance with the requirements of this section on a regular basis.

A benchmark administrator must establish and maintain effective organisational and governance arrangements to enable it to carry out the activity of administering a specified benchmark.

In discharging its duties, the benchmark administrator must have regard to the importance of maintaining integrity of the market and the continuity of the specified benchmark including the need for contractual certainty for contracts which reference the specified benchmark.

A benchmark administrator must maintain and operate effective organisational and administrative arrangements to enable it to identify and manage any conflicts of interest that may arise from the process of administering a specified benchmark.

A benchmark administrator must:

1. (1)

   appoint a benchmark administration manager with responsibility for oversight of its compliance with this section; and

2. (2)

   ensure that its benchmark administration manager has a level of authority and access to resources and information sufficient to enable him to carry out that responsibility.

A benchmark administrator must:

1. (1)

   have effective arrangements and procedures that allow the regular monitoring and surveillance of benchmark submissions:

2. (2)

   monitor the benchmark submissions in order to identify breaches of its practice standards (set out in MAR 8.3.10R (1)) and conduct that may involve manipulation, or attempted manipulation, of the specified benchmark it administers and provide to the oversight committee of the specified benchmark timely updates of suspected breaches of practice standards and attempted manipulation; and

3. (3)

   notify the FCA and provide all relevant information where it suspects that, in relation to the specified benchmark it administers, there has been:

   1. (a)

      a material breach of the benchmark administrator's practice standards (set out in MAR 8.3.10R (1));

   2. (b)

      conduct that may involve manipulation or attempted manipulation of the specified benchmark it administers; or

   3. (c)

      collusion to manipulate or to attempt to manipulate the specified benchmark it administers.

1A benchmark administrator must ensure that the specified benchmark it administers is determined using adequate benchmark submissions.

A benchmark administrator must establish an oversight committee (which must be a committee of the benchmark administrator) which includes:1

1. (1)

   1(where applicable) representatives of benchmark submitters;

2. (2)

   1market infrastructure providers;

3. (3)

   1users of the specified benchmark; and

4. (4)

   1at least two independent non-executive directors of the benchmark administrator approved to carry out the non-executive director function.

1A benchmark administrator of a specified benchmark that does not have benchmark submitters must consider including in the oversight committee representatives of persons who make benchmark submissions available.

The benchmark administrator through its oversight committee must:

1. (1)

   develop practice standards in a published code which, for the relevant specified benchmark, set out the responsibilities for: 1

   1
   1. (a)

      1benchmark submitters and (where applicable) persons who make benchmark submissions available;

   2. (b)

      1the benchmark administrator; and

   3. (c)

      1the oversight committee;

2. (2)

   undertake regular periodic reviews of:

   1. (a)

      the practice standards mentioned in MAR 8.3.10R (1);

   2. (b)

      the setting and definition of the specified benchmark it administers;

   3. (c)

      where applicable the composition of panels of benchmark submitters or other persons who make benchmark submissions available; and1

      1
   4. (d)

      the process of making relevant benchmark submissions; and

3. (3)

   before making any changes as a result of such review:

   1. (a)

      notify the FCA;

   2. (b)

      after doing so, publish a draft of the proposed changes and a notice that representations about the proposed changes may be made to the benchmark administrator within a specified time; and

   3. (c)

      have regard to any such representations.

The benchmark administrator must be able to 1provide to the FCA, on a daily basis, all benchmark submissions it used to determine 1the specified benchmark it administers.

A benchmark administrator must publish quarterly aggregate statistics outlining the activity in the underlying market relevant to the specified benchmark.

1A benchmark administrator must keep records for at least five years of:

1. (1)

   all benchmark submissions used to determine the specified benchmark it administers; and1

2. (2)

   the person and, where possible, the individual who made the relevant benchmark submission.1

Notwithstanding any other financial resource requirements that may apply, a firm whose permitted activities include administering a specified benchmark must:

1. (1)

   be able to meet its liabilities as they fall due; and

2. (2)

   maintain, at all times, sufficient financial resources to be able to cover the operating costs of administering the specified benchmark for a period of at least six months.

1A benchmark administrator must notify the FCA, as soon as practicable, where it identifies a reasonable possibility of not being able to hold sufficient financial resources to cover the operating costs of administering the specified benchmark for a period of nine months.

1. (1)

   2A benchmark administrator of a specified benchmark must ensure relevant users are granted non-discriminatory access to:

   1. (a)

      relevant price and data feeds and information on the composition, methodology and pricing of that specified benchmark; and

   2. (b)

      licences or other arrangements to use that specified benchmark;

   for the purpose of clearing and trading by the relevant users.

2. (2)

   In this section, “relevant user” means:

   1. (a)

      a CCP3;

   2. (b)

      an MTF; and

   3. (c)

      a regulated market.

2A benchmark administrator must grant relevant users access for the purpose of clearing and trading to the specified benchmark it administers (including access to information):

1. (1)

   on a fair, reasonable and non-discriminatory basis; and

2. (2)

   without undue delay, following a written request by the relevant user.

1. (1)

   2Where a benchmark administrator charges a relevant user a fee for access to the specified benchmark, it must grant the relevant user access at a reasonable commercial price taking into account the price at which access is granted or the intellectual property rights are licensed to other relevant users or any related persons for the purposes of clearing and trading.

2. (2)

   Different fees can be charged to different relevant users or related persons only where this is objectively justified having regard to reasonable commercial grounds such as the quantity, scope or field of use requested.