How Should Structured Product Issuers and Distributors Respond to the IOSCO Principles for Financial Benchmarks?

Abstract

The International Organization of Securities Commissions (IOSCO) published its final report on “Principles for Financial Benchmarks” in July 2013. The IOSCO Principles themselves do not impose a global standard, as their application is proportional to the size and risks posed by the relevant index. However, the IOSCO Principles may be a helpful “best practice” guide for an issuer or any of its affiliates that are index sponsors of a proprietary index. This article discusses how structured products issuers and distributors might respond to the IOSCO Principles.