.jpg)
- The Polish Financial Supervision Authority has decided to authorise GPW Benchmark as administrator of interest rate benchmarks including the critical benchmark WIBOR
- PFSA’s decision closes the administrative process concerning the WIBID and WIBOR Reference Rates provided by GPW Benchmark
- WIBOR along with LIBOR, EURIBOR, EONIA and STIBOR on the European Commission has been put on the list of critical benchmarks used in financial markets
- WIBOR is broadly used as a benchmark in financial contracts and instruments
- The authorisation allows GPW Benchmark to further develop its offer of interest rate benchmarks
GPW Benchmark, a member of the GPW Group, has been authorised as administrator of interest rate benchmarks including the WIBID and WIBOR Reference Rates.
“The authorisation as administrator of interest rate benchmarks, including the critical benchmark WIBOR, closes the process of the Reference Rates’ adjustments to the requirements of BMR Regulation and opens the next phase of a licensed administrator’s performance: reviews of the method necessary to ensure the reliability and representativeness of the benchmarks and to provide new interest rates benchmarks defined in accordance with global trends,” said Zbigniew Minda, President of GPW Benchmark.
PFSA’s authorisation secures the WIBID and WIBOR Reference Rates continuity of use in financial contracts and instruments.
“We wish to thank everyone participating in the working groups and consultation’s processes GPW Benchmark has initiated already in 2018. We owe a special thanks to the Fixing Participants that worked throughout the administrative procedure to implement detailed principles necessary to gradually align with the specific responsibilities of data contributors. The adjustment process included the development and implementation of a system which automates the transmission of input data based directly on actual transactions from Fixing Participants to the Administrator,” said Aleksandra Bluj, Vice-President of GPW Benchmark.
The WIBID and WIBOR Reference Rate Fixing Participants include: Bank Gospodarstwa Krajowego, Bank Handlowy w Warszawie, Bank Millennium, Bank Polska Kasa Opieki, BNP Paribas Bank Polska, Deutsche Bank Polska, ING Bank Śląski, mBank, PKO Bank Polski, and Santander Bank Polska.
“The solution implemented by the Fixing Participants ensures secure contribution of input data and enables flexible adjustment of the WIBID and WIBOR benchmark methodology to changing market conditions. It also opens up the opportunity to develop other interest rate benchmarks thanks to those entities which has decided to install systems supporting automated contributing of transaction data. As critical benchmark administrator, GPW Benchmark is committed to take all steps necessary to provide benchmarks which may be used as alternative benchmarks by supervised entities, enhancing the safety of the financial system. Owing to transaction data provided by Fixing Participants and other credit institutions supporting the process, we have developed a concept of risk free rate benchmarks which are to be provided as of 2021,” said Aleksandra Bluj.
“GPW Benchmark, as a benchmark administrator, has a unique role in the GPW Group, what reinforces the strengths and reputation of the Group as a provider of infrastructure solutions in the CEE financial market. I wish to congratulate our colleagues at GPW Benchmark. GPW Benchmark is the first in Poland and one among a few administrators in Europe to provide an almost complete range of benchmarks in compliance with the strict European regulations. Every success entails responsibility; however, I am convinced that we have all the necessary skills and tools to administer and provide both the crucial GPW Indices Family, such as WIG, and interest rate benchmarks, including the critical benchmark - WIBOR,” said Marek Dietl, said Marek Dietl, President of the GPW Management Board.
GPW Benchmark has been the administrator of benchmarks related to capital markets since 29 November 2019 when the European Securities and Markets Authority (ESMA), following the decision of PFSA, put GPW Benchmark into the register of benchmark administrators. Since then, GPW Benchmark has taken over the role of benchmark provider from GPW in case of GPW Indices Family and from BondSpot as regards of TBSP.Index.
Taking advantage of transaction data contributed by Fixing Participants and several other credit institutions, GPW Benchmark continued cooperation with Poland’s key institutions in order to develop basis for indices which could be used as alternative interest rate benchmarks. Selected concepts of new interest rate benchmarks are published on the company’s website. The authorisation as licensed administrator of a critical benchmark allows GPW Benchmark not only to present indices concepts with informatory purpose but also to expand the offer of interest rate benchmarks provided in line with the BMR requirements.
***
The Warsaw Stock Exchange Group (GPW Group) operates trading platforms for shares, Treasury and corporate bonds, derivatives, electricity and gas, and provides indices and benchmarks including WIBOR and WIBID. The index agent FTSE Russell classifies the Polish capital market as a Developed Market since 2018. The markets operated by the GPW Group are the biggest in Central and Eastern Europe. For more information, visit www.gpw.pl
GPW Benchmark S.A., a member of the GPW S.A. Group, is the administrator of the WIBID and WIBOR Reference Rates and benchmarks based on input data from GPW, BondSpot and CEE exchange markets. For more information, visit http://www.gpwbenchmark.pl/
