Document ID: chunk:federal_register_of_legislation:F2022C00386:body:0:p6
Version: federal_register_of_legislation:F2022C00386
Segment Type: other
Provision Reference: 
Character Range: 14826–17924

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 material change, before deciding whether to make the material change; and
(ii)       notify users about the proposed material change, a reasonable time before the change is implemented; and
(b)       notify ASIC in writing about the proposed material change, within a reasonable time before the change is implemented.
     (2) Subrule (1) does not apply to a change where ASIC has given the licensee a written notice requiring the licensee to make that change, in accordance with the ASIC Financial Benchmark (Compelled) Rules 2017.
Note: Under those Rules, ASIC may give the benchmark administrator licensee a notice requiring the licensee to generate or administer the benchmark in a particular way, including by changing the method used to generate the financial benchmark. The notice may also specify requirements relating to the change, including requirements to consult with or inform users about the change.

     2.2.5           BBSW benchmark administrator licensee to maintain Final Stage Method
     (1) A benchmark administrator licensee whose benchmark administrator licence specifies the BBSW must maintain a method (Final Stage Method) for generating and administering the BBSW that is designed, to the extent reasonably practicable, to allow the licensee to generate and administer the BBSW when other methods that the licensee would normally use to generate and administer the BBSW have failed or are likely to fail.
     (2) The Final Stage Method must require Contributors to provide financial benchmark data to be used in generating and administering the BBSW that is based on the exercise of expert judgement by the Contributors.
     (3) The licensee must comply with Rule 2.2.4 in relation to any proposed material change to the Final Stage Method.
     (4) In this Rule, BBSW means the bank bill swap rate, a short-term money market benchmark interest rate, as specified in the licensee's benchmark administrator licence.
Note: Under the ASIC Financial Benchmark (Compelled) Rules 2017, ASIC may give the licensee a notice requiring the licensee to generate or administer the benchmark in a particular way, including by changing this Final Stage Method.

     Part 2.3         Business continuity and risk management

     2.3.1           Risk management
A benchmark administrator licensee must have adequate arrangements to manage risks to the licensee's ability to generate or administer each financial benchmark specified in the licensee's benchmark administrator licence, in a way that maintains the quality, integrity, availability, reliability and credibility of the financial benchmark, including legal, operational and business risks.

     2.3.2           Business continuity
     A benchmark administrator licensee must have business continuity, backup and data recovery plans designed to: