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 the EU benchmark regulation.
Foxberry welcomes both the IOSCO principles and the EU benchmark regulation for which we are well prepared.
Increasing transparency and decreasing the risk of conflicts of interests is very much at the core of Foxberry's business model.
To mitigate potential conflicts of interests, Foxberry has put in place the following restrictions of its activities:
(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.
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 Guidelines document as well as a number of 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.
We invite you to read it and welcome any questions.