Important information

IOSCO Principles – Statement of Compliance: Macquarie Bank Limited

Published: November 2021

1. Introduction

The Principles for Financial Benchmarks (“Principles”) were issued by the Organization of Securities Commissions (“IOSCO”) on 17 July 2019. The purpose of the Principles is to set a framework for use of financial benchmarks in financial markets by addressing, inter alia, transparency of the benchmark submission process, content and transparency of methodology, governance and accountability.

IOSCO has recommended that administrators of benchmarks publicly disclose the extent of their compliance with the IOSCO Principles on an annual basis. This Compliance Statement is made by the Commodities and Global Markets Group of Macquarie Bank Limited (London Branch) (“Macquarie”) in adherence to this recommendation.

Unless otherwise indicated, capitalised terms used in this Compliance Statement are within the meaning of the Principles.

 

2. Scope of Compliance Statement

This Compliance Statement is made in respect of Macquarie’s role as Administrator of a number of proprietary indices that fall within the meaning of Benchmarks (together, the “Macquarie Indices” and, on an individual basis, a “Macquarie Index”).

Macquarie develops, calculates, publishes and offers financial products referencing Macquarie Indices. The Macquarie Indices are rules-based investment strategies that may include constituents from various asset classes (including commodities, foreign exchange, rates and equities). Macquarie Indices may be bespoke and restricted for use by a single investor or public and made available to range of investors.

The Macquarie Indices exclude, and this Compliance Statement therefore does not apply to, illustrative indices which are not linked to financial products and which are not used as a performance measure for any financial product.

 

3. Macquarie Proprietary Index Policy

Macquarie designs and creates a range of proprietary indices, for use in its activities including the issuance of financial products linked to such Benchmarks.

Macquarie has established a governance and oversight framework in respect of the Macquarie Indices which is set out in its Proprietary Index Policy dated September 2020, Proprietary Index Control Framework and Proprietary Index Oversight Committee Charter (together, the “Policy”). The Policy is intended to address, inter alia, the Administrator requirements set out within the Principles.

Macquarie has established an Index Oversight Committee (the “Committee”) to oversee and support the implementation of the Policy. The Committee’s responsibilities include:

  • the implementation and operation of all Macquarie Indices;
  • ensuring the quality and integrity of new indices and managing conflicts of interest relating to indices; and
  • if applicable, ensuring that each Macquarie Index has an authorised Administrator and such Administrator performs its role in accordance with the relevant administration agreements in place.

 

4. Compliance Statement

Subject to the above and as of the date of this Compliance Statement, Macquarie hereby confirms its observance of, and adherence to, the Principles in a manner which is proportionate to the size, risk profile, composition and purpose of each Macquarie Index.

Macquarie is committed to operating its Macquarie Index business in accordance with the Principles and considers that it complies with the Principles in all material respects, proportionate to the size and risks posed by each Macquarie Index and the Macquarie Index setting process (as permitted by IOSCO).

Macquarie has established policies and procedures that seek to apply appropriate governance procedures to the creation, maintenance and provision of the Macquarie Indices. In addition, Macquarie and its employees are subject to policies and procedures designed to identify, manage and address any conflicts of interest. These policies and procedures seek to maintain the integrity of the process by which Macquarie creates and maintains the Macquarie Indices.

 

5. Further Information

If you require further information regarding the Macquarie Indices please contact Macquarie at cip@macquarie.com.