ROBO Global has registered as a benchmark administrator under the Benchmark Regulation (BMR) meaning its indices can continue to be used across the European Union.
As part of this, the firm has appointed Moorgate Benchmarks as its EU legal representative in a move to ensure compliance with the new regulation.
Index providers must comply with BMR, which comes into effect on 1 January 2020, if they want their indices to be used as a benchmark by investment products, including ETFs.
The regulation was introduced following the London Interbank Offering Rate (LIBOR) scandal in 2014 where banks were falsely inflating or deflating their rates to gain profit from trades in addition to a significantly large number of indices and benchmarks being launched.
BMR looks to limit the number of indices available by imposing stricter rules on who can launch a benchmark.
Along with receiving approval from the European Securities and Markets Authority (ESMA), ROBO Global has also registered as a benchmark administrator with the Financial Conduct Authority (FCA).
In March, the FCA introduced a UK benchmark register which is designed to replace the ESMA-equivalent in preparation for a no-deal Brexit.
Richard Lightbound (pictured), CEO, EMEA, of ROBO Global, commented: “Our partnership with Moorgate Benchmarks allows us to continue to focus on our core strengths in the knowledge that our indices have the best possible governance and meet global standards of excellence in index design.”
Gareth Parker, chief indexing officer of Moorgate Benchmarks, added: “Recognition of indices under the EU BMR gives investors and advisers confidence in the accuracy and governance of the indices they rely on.
“We are delighted to be expanding our partnership with ROBO Global, and other third-country index providers, to ensure indices remain compliant following the BMR’s entry into force.”
BMR is the ‘Brexit version of regulation’
Along with acting as ROBO Global’s legal representative, Moorgate Benchmarks also aids the firm with index design, optimisation and governance services.