Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Bank Bill Benchmark Rate guidance and overview published

11 October 2017

Bank Bill Benchmark Rate guidance and overview published by FMA


The Financial Markets Authority (FMA) is today publishing guidance on conduct and expected controls in relation to trading that sets the Bank Bill Benchmark Rate (BKBM) and closing rates. Alongside this, the FMA is also publishing an overview of BKBM and benchmarks, their purpose and how they are regulated.

One of the FMA’s strategic priorities is capital market growth and integrity. The FMA wants to establish expectations in the wholesale markets that support public and business confidence in their integrity.

Garth Stanish, FMA director of Capital Markets said, “By clarifying our expectations of conduct and controls, we’re aiming to reduce regulatory uncertainty and encourage participation in these benchmarks. Some banks have stopped participating in recent years and with that comes an increased risk that benchmarks won’t be robust.”

The guidance sets out what the FMA is looking for when assessing trading conduct, its expectations and further sources of guidance.

It also makes clear that should the FMA see evidence of trading that has been undertaken for the purpose of moving the BKBM or another rate, the FMA will take appropriate and proportionate action.

There has been significant publicity around misconduct relating to various global benchmarks such as LIBOR and EURIBOR in recent years. In 2014, the FMA analysed a sample of trading and other data relating to BKBM between 2013 and 2014.

The FMA has conducted further targeted enquiries into specific conduct since then, but have found no evidence of systemic trading in bank bills that was not for legitimate purposes. However the FMA will continue to engage with banks and overseas regulators on this topic.

Ends


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Department Of Conservation: Beech Mast On The Cards After Warm Summer

Climate modelling shows this year’s hot March has increased the chance of beech forest seeding next summer in parts of New Zealand, which could be bad news for native wildlife. The Department of Conservation (DOC) uses data from NIWA’s virtual climate ... More>>

Government: Delivering Lower Card Fees To Business

Commerce and Consumer Affairs Minister David Clark has today announced the Government’s next steps to reduce merchant service fees, that banks charge businesses when customers use a credit or debit card to pay, which is estimated to save New Zealand businesses ... More>>

SEEK NZ Employment Report: April 2021

OVERVIEW OF APRIL 2021: STATE OF THE NATION: April, for the second consecutive month, saw the highest number of jobs ever advertised on seek.co.nz. Applications per job ad fell 9% month-on-month (m/m). SEEK job ads were up by 12% m/m. SEEK job ads were ... More>>

Geo40: Global Plans To Recover Low-Carbon Lithium At Scale Accelerated By Investment Of Up To $7.5m By Pacific Channel

New Zealand’s leading sustainable, mineral-recovery company, Geo40 Limited has secured up to $7.5m in equity investment from New Zealand deep-tech specialist Venture Capital firm Pacific Channel to fast-track plans to develop its nascent lithium-from-geothermal-fluid ... More>>

Stats: Lower Job Security Linked To Lower Life Satisfaction

People who feel their employment is insecure are more likely than other employed people to rate their overall life satisfaction poorly, Stats NZ said today. New survey data from the March 2021 quarter shows that 26 percent of employed people who thought ... More>>

The Conversation: The Outlook For Coral Reefs Remains Grim Unless We Cut Emissions Fast — New Research

A study of 183 coral reefs worldwide quantified the impacts of ocean warming and acidification on reef growth rates. Even under the lowest emissions scenarios, the future of reefs is not bright. More>>