MSCI authorized as an EU benchmark administrator

Mar 8th, 2018 | By | Category: ETF and Index News

Leading index provider to the ETF industry MSCI has received authorization from the UK’s Financial Conduct Authority (FCA) to be registered as a regulated UK benchmark administrator under the European Union’s Benchmark Regulation.

Baer Pettit, President of MSCI

Baer Pettit, President of MSCI.

The regulation, which has been in effect since 1 January 2018, forms part of the EU’s drive to enhance the reliability and integrity of financial benchmarks following the LIBOR scandal in 2012.

It offers a harmonized framework for index providers, thereby providing investors in index-linked products, such as ETFs, with a greater degree of confidence that these indices will not be subject to manipulation.

Both EU and non-EU entities that administer financial benchmarks used in the EU are required to apply for a license under the EU Benchmarks Regulation before 1 January 2020.

Baer Pettit, President of MSCI, commented, “We welcome the positive news of the FCA’s decision and feel it reflects our continued commitment to high standards in benchmark administration, which pre-dates the EU Benchmarks Regulation.

“This is evidenced through our adoption of the IOSCO Principles for Financial Benchmarks and our long history as a respected benchmark provider. We fully support the objectives of the benchmark regulation and will continue to be an active contributor to its development. Today’s announcement underlines MSCI’s commitment towards providing our clients with certainty and stability.”

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