Benchmarks Regulation Course

The FCA defines a Benchmark as an index used to determine the value of or the amount payable under a financial instrument (or contract). Alternatively, it measures the performance of an investment fund.

This data is classified as public information and is calculated periodically. Following the LIBOR and Forex fixing scandals, regulators are focused on the production of benchmarks.

Our Benchmarks Regulation Training Course explains the importance of following proper conduct, the repercussions for violating regulations, and how to avoid these.

About this Course

Available as part of our FCA Compliance Library.

Learning Objectives

This course will prepare you to:

Understand the definition and function of Benchmarking, and the importance of proper conduct
Recognise the related risks that need to be addressed
Understand the fundamentals of LIBOR, Forex/FX and LBMA
Follow the FCA's standards of conduct
Recognise and avoid the repercussions for violating the standards

Latest Course Updates

Course redesigned with a more modern feel
Full review conducted by an FCA expert
Text & image updates throughout the course

Course Outline

Welcome

What is Benchmarks Regulation?

- What do you think?

What is a benchmark?

Benchmark activities

- Coverage of the FCA's requirements

Risks that need to be addressed

- Specific risk variables
- Key risks
- You make the call: Is it a risk?

What was the problem with LIBOR?

- How it worked
- Benchmark manipulation
- What had these banks done wrong?
- The regulators intervene
- Traders prosecuted for benchmark manipulation
- Exercise: Have you understood LIBOR?

Sterling Overnight Index Average (SONIA)

Foreign Exchange (Forex/FX)

- Daily FX trading worth
- How it works
- Basis of benchmark rates
- Market manipulation
- Banging the close
- The regulators intervene
- Total FCA fines for FX rigging
- Exercise: Have you understood FX?

London Bullion Market Association (LBMA) Gold Price

- The price participants
- Market manipulation & regulatory intervention
- Total FCA fines for gold price rigging
- Exercise: Have you understood LBMA Gold Price Index?

Standards of Conduct for Benchmark Setting

- You make the call: Standards of Conduct

Oversight & controls

- Key areas of improvement
- You make the call: Is this the right approach?

The EU Benchmarks Regulation

- Requirements under the Regulation
- ICAP Europe & LIBOR
- Barclays & FX
- Daniel James Plunkett & Gold Fixing

Scenario 1

- Questions

Scenario 2

- Questions

Scenario 3

- Questions

Summary

Affirmation

Assessment

Course Specifications

Structure

Approximately 45 minutes followed by a 10-question assessment.

Audience

Suitable for all staff - examples and interactivities designed for staff at all levels. No previous knowledge or experience is required.

Design

SHARD-compliant, responsive display on all devices, accessibility on screen readers, visual design controlled via client style sheet.

Compatibility

All Windows, Mac OSX, iOS, Android (Flash-free for mobile compatibility). AICC and SCORM 1.2-compliant, suitable for both hosted and deployed SCORM or AICC.