Zurich-based index provider STOXX, a subsidiary of Deutsche Boerse Group, has been recognized as an administrator under the European Union’s Benchmarks Regulation.

STOXX’s indices will now be included in the Benchmarks Register compiled by the European Securities and Markets Authority (ESMA).

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 STOXX as a benchmark administrator, the firm’s indices will now be included in the Benchmarks Register compiled by the European Securities and Markets Authority (ESMA).

Steffen Hermanns, Chief Executive Officer at STOXX, commented, “Serving the interest of our clients, STOXX has a long history of providing neutral, transparent and strictly rules-based indices. We strongly support the objectives of the EU Benchmark Regulation, and we are happy to be officially fully compliant with this regulation.

“Built on a solid foundation including a strong governance structure and rigorous operational and IT processes, STOXX benchmarks have been compliant with IOSCO Principles for Financial Benchmarks, the global standard provision of benchmarks, already since 2014.”

STOXX joins other leading index providers to the ETF industry, including MSCI, FTSE Russell, and Solactive, which have already been recognized as benchmark administrators. Morningstar is yet to receive its authorization and joins their ranks.