MOEX Statement on BMR
As a third-country index administrator, MOEX must take certain actions to ensure its benchmarks may continue to be used by clients in the EU, in accordance to new Benchmark Regulations (BMR) set by the European Securities and Markets Authority (ESMA). As an index provider and calculating agent, MOEX has the goal of obtaining ESMA approval for the following benchmarks:
- RTS index stock index
- USDRUB FX Fixing (RUB05 of The 1998 FX and Currency Option Definitions jointly published by ISDA and EMTA)
- RUSFAR money market rate
whilst still retaining maximum control over the brand, methodology and administration of its benchmarks.
Although BMR came into effect on 1 January 2018, there is a transitional period up until the deadline of 31 December 2021, to which time MOEX must attain the ESMA BMR approval. There are three main routes for obtaining ESMA BMR approval: Recognition (BMR article 32), Endorsement (BMR article 33), Equivalence (BMR article 30). MOEX is looking to pursue accreditation through the Endorsement route, which will involve partnering with a BMR-approved benchmark administrator. The partnership will be confirmed by July 2020 in order to meet the deadline for accreditation and cause no market disruption.