Dentons assisted GPW Benchmark in the process of filing an application to the Polish Financial Supervision Authority (PFSA) to obtain authorization to administer reference rates, including the key interest rate benchmark WIBOR.

Filing the application before the end of 2019 means that the transition period under which supervised entities may continue to use WIBID and WIBOR benchmarks is extended until PFSA issues the authorization. In the meantime, GPW Benchmark will follow an administrative procedure that requires provision of addenda and explanations as well as amendments, if requested by the supervision authority.

The application was submitted together with full documentation of the WIBID and WIBOR reference rates, adapted to the requirements specified in the Benchmarks Regulation (BMR*). The documentation includes the WIBID and WIBOR Reference Rate Rules and the WIBID and WIBOR Fixing Participant Code of Conduct, which governs relations between GPW Benchmark and the banks participating in the reference rates fixing. Dentons assisted GPW Benchmark in preparing the documentation, which has been effective as of February 1, 2018.

“As the WIBOR reference rate is a key benchmark for the Polish economy, used among others in loans, bonds and derivatives, it is therefore critical to ensure continuity of use by supervised entities. We are delighted to deliver this stage of BMR implementation on time, as the process is vital for the financial markets,” said partner Marcin Bartczak, Co-head of Dentons’ Europe Financial Institutions Regulatory practice. Working on the project alongside Marcin Bartczak was associate Tomasz Orczykowski, member of the Financial Institutions Regulatory practice in Dentons’ Warsaw office.

*BMR – Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds.

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