Document ID: chunk:federal_register_of_legislation:F2022C00386:body:0:p5
Version: federal_register_of_legislation:F2022C00386
Segment Type: other
Provision Reference: 
Character Range: 11948–15100

licensee's benchmark administrator licence, including arrangements reasonably designed to ensure that:
(a)        the licensee accepts and retains financial benchmark data in a manner that maintains the security and integrity of that data; and
(b)       the financial benchmark data used by the licensee is accurate and complete.

     2.2.3           Methodology
(1) A benchmark administrator licensee must use a method for generating each financial benchmark specified in the licensee's benchmark administrator licence that is designed to ensure the quality, integrity, availability, reliability and credibility of the financial benchmark.
(2) Without limiting subrule (1), the method referred to in that subrule must:
(a)        be designed to generate, in the widest range of market conditions, a financial benchmark that is an accurate and reliable representation of the Interest;
(b)       establish the criteria for the financial benchmark data that is used to generate the financial benchmark;
(c)        where more than one kind of financial benchmark data may be used to generate the financial benchmark:
(i)         establish the hierarchy for the order in which the financial benchmark data will be used to generate the financial benchmark; and
(ii)       require the use of financial benchmark data referred to in paragraph 2.2.2(1)(b) in priority to other financial benchmark data in generating the financial benchmark;
(d)       establish the:
(i)         minimum quantity and quality of financial benchmark data required to generate the financial benchmark;
(ii)       manner in which the financial benchmark data will be used to generate the financial benchmark; and
(iii)     contingency arrangements that apply where the quantity or quality of the financial benchmark data is inadequate to generate the financial benchmark;
(e)        where the licensee or Relevant Persons may exercise expert judgement or discretion in generating the financial benchmark, establish guidelines, rules or other controls designed to govern and promote transparency and consistency in the exercise of the expert judgement or discretion;
(f)        establish procedures for handling errors, discrepancies or reports of suspicious activity in relation to the financial benchmark data used to generate the financial benchmark;
(g)       establish the frequency of review, audit and testing in accordance with subrule (3); and
(h)       establish the procedures for consulting on a proposed material change to the method in accordance with Rule 2.2.4.
     (3) The licensee must ensure that the method and the licensee's use of the method is:
(a)        reviewed, audited and tested periodically; and
(b)       updated as appropriate.

     2.2.4           Changes to the method
(1) A benchmark administrator licensee must, in relation to any proposed material change to the method for generating a financial benchmark specified in the licensee's benchmark administrator licence, other than a material change referred to in subrule (2):
(a)        take such steps as are reasonable in the circumstances to:
(i)         consult with users about the proposed