Benchmark statements

The European Regulation on indexes used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds (the EU BMR) introduces a common framework to ensure the accuracy and integrity of indices used as benchmarks in the European Union.

The regulation requires benchmark administrators to publish benchmark statements. These are intended to help users and potential users of a benchmark understand the economic reality that the benchmark seeks to measure, the sources of its input data, the reliability of the benchmark in times of market stress and its susceptibility to manipulation.

For the purposes of preparing its benchmark statements, FTSE Russell has grouped indices and index series into index families. One benchmark statement may therefore apply to several associated index series within the same index family.

The indices in each family measure the same economic reality, use common input data and are calculated according to the same methodology. However, individual indices in each family may differ in their geographic coverage (eg Europe, Asia), market classification (eg developed, emerging) size banding (eg large, mid, small), currency of calculation and, for fixed income indices, the range of eligible maturities (eg 5-10 years, 10-20 years).

Families may also include capped, hedged and net-of-tax variants of certain indices. To assist users, the benchmark statements include links to associated benchmark policies and methodology documents.