Benchmark Administration

Situation

The benchmark administrators of PRIBOR understood the challenges they were to face with the requirement to meet BMR beginning 1^st January 2018. The benchmark was calculated by Thomson Reuters, and governance of the benchmark was performed by volunteers who also worked within the banking sector.

Process

GRSS was approached to discuss potential options for the benchmark and meetings were held with panel banks, ACI Czech Republic, the Czech Bankers Association and the Central Bank. GRSS took a consultative approach and provided a number of options which would achieve the objective of making the benchmark compliant under the BMR.

Outcome

In 2017 ACI Czech Republic and the Czech Bankers Association divested their PRIBOR benchmark to a locally incorporated subsidiary of GRSS – the Czech Financial Benchmark Facility s.a. (CFBF), a specialist benchmark administrator entity established in the Czech Republic.

Latest update

All panel banks now submit to the GRSS calculating agent system whilst adhering to a BMR compliant Code of Conduct and rates are published daily to ten international data vendors.

Demonstrative of the consultative approach the GRSS group adopts when engaging with key stakeholders a ‘Panel Bank Working Group’ has been formed by the CFBF to facilitate discussion on shared issues and the eventual evolution of PRIBOR.

In January 2018, the benchmark became fee liable and is now self-funding as a result.

The CFBF is in the process of finalising an application for authorisation with the Czech National Bank and registration of PRIBOR.