Solactive obtains administrator status under EU’s Benchmarks Regulation

Apr 10th, 2019 | By | Category: ETF and Index News

Frankfurt-based index provider Solactive has been registered as an administrator under the European Union’s Benchmarks Regulation.

Steffen Scheuble, CEO of Solactive

Steffen Scheuble, CEO of Solactive.

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.

Following the approval of Solactive as a benchmark administrator, the firm has registered nearly 1,700 indices with the German Federal Financial Supervisory Authority (BaFin).

Steffen Scheuble, CEO of Solactive, commented, “We regard the European Benchmarks Regulation as important legislation that helps ensure the avoidance of potential conflicts of interest in the indexing business. The registration as an authorized Benchmark Administrator is a huge leap forward for Solactive, and we are very proud to have achieved this milestone.”

Christian Vollmuth, Chief Risk Officer of Solactive, added, “Our registration as a Benchmark Administrator is the culmination of 18 months of detailed project work. Working in conjunction with the regulator, we have established a solid foundation for compliance with the EU Benchmarks Regulation, which will also help to ensure the accuracy and integrity of our benchmarks.”

Solactive joins other leading index providers to the ETF industry, including MSCI and FTSE Russell, which have already been recognized as benchmark administrators.

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