Scientific Beta

Institutional Asset Manager: "“The mere disclosure of a concise methodology will be sufficient to meet the transparency requirements of the Regulation – neither investors nor their advisors will be in a position to perform advanced due diligence on the quality and robustness of methodologies, let alone verify that the advertised track records of indices correspond to the systematic application of their methodologies.”"

Institutional Asset Manager 27/11/2015

"(...) EDHEC Risk has issued a statement that it “regrets that the future text on European regulation of benchmarks organises opacity in the index provision market”. The organisation’s comments come in the light of an agreement between the European Parliament and the Council of the EU on a Regulation of financial benchmarks which was reached at the end of November. The organisation writes: “Unfortunately, this agreement does not respond to the criticism that EDHEC Risk Institute had expressed in an open letter to the chair of the European Parliament’s ECON committee Roberto Gualtieri on February 20, 2015. To the extent that the agreement is consistent with the text adopted by the European Parliament on May 19, 2015, we confirm that the proposed Regulation condones opacity in the index provision market. The mere disclosure of a concise methodology will be sufficient to meet the transparency requirements of the Regulation – neither investors nor their advisors will be in a position to perform advanced due diligence on the quality and robustness of methodologies, let alone verify that the advertised track records of indices correspond to the systematic application of their methodologies.” (...)"