In an effort to facilitate the use of financial benchmarks in cross-border transactions, European and Australian securities regulators have signed a cooperation agreement.
The European Securities and Markets Authority (ESMA) and the Australian Securities and Investments Commission (ASIC) signed a memorandum of understanding (MoU) setting out cooperation arrangements between the regions’ regulators designed to ensure the integrity and accuracy of financial benchmarks.
The agreement follows a decision by the European Commission recognizing Australia’s legal and supervisory framework as equivalent to its requirements when it comes to regulating financial benchmarks.
The MoU sets out cooperation arrangements, aims to ensure effective information sharing and supervisory coordination.
“Benchmarks play a vital role in cross-border financial transactions and international regulators need to work together to ensure their integrity and accuracy,” said James Shipton, chair of the ASIC.
“The use of financial benchmarks in global capital markets is important for market participants and their accuracy and reliability needs to be ensured at all times,” said Steven Maijoor, chair of the ESMA.