A message to our clients
Governance of financial indices is becoming increasingly important, with welcomed initiatives such as the “Principles for Financial Benchmarks” as published by the International Organization of Securities Commissions (“IOSCO”), and more recently the EU benchmark regulation ("BMR").
Increasing transparency and decreasing the risk of conflicts of interest is very much at the core of Foxberry's business model, and Foxberry welcomes both the IOSCO principles and the BMR.
By becoming one of the first index providers to be registered as a benchmark administrator under the BMR, we demonstrated our commitment to the guiding principles of the BMR.
Foxberry has put a number of restrictions on its activities, mitigating certain conflicts of interest that many investors are facing: (a) Foxberry does not issue or enter into index linked products; (b) Foxberry does not market make or hedge transactions linked to an index; and (c) Foxberry does not provide price data used as a pricing source for an index.
In addition, Foxberry has implemented a control framework for the process of creating, determining and distributing its indices. Foxberry’s control framework is documented through an internal Index Provision Policy as well as a number of other policies and procedures. In addition, Foxberry has established an Index Committee to provide oversight of the Index determination process and to be the governing function of Foxberry’s indices.
The “IOSCO Control Framework” document, which is available below, summarises this control framework from an IOSCO perspective. In addition, you will find a number of governance related policies and procedures below.
We invite you to read these documents and welcome any questions.
Potential material changes