GPW Benchmark has published the Consultation Paper - WIBID and WIBOR under Benchmark Regulation (BMR) which presents the effects of thorough economic, statistical and legal analysis and consultation carried out in order to meet the BMR requirements while ensuring the continuity of the WIBID and WIBOR reference rates.

The Consultation Paper was distributed on July 22nd, 2019 among the main professional and institutional stakeholders: Fixing Participants, financial safety net institutions (National Bank of Poland, the  Ministry of Finance, the Polish Financial Supervision Authority, the Bank Guarantee Fund), the government administration authorities competent for consumer protection, as well as GPW Benchmark counterparties – signatories of the Agreement for the Use of WIBID and WIBOR Reference Rates under which those counterparties are licensed to use the WIBID and WIBOR in their financial contracts, instruments or to measure the investment fund performance. With a distribution of the Consultation Paper, GPW Benchmark has commenced an official consultation process ending on September 10th, 2019.

The analytical process carried out by GPW Benchmark led to construction of a theoretical WIBOR Index. The WIBOR Index represents an idea of the WIBID and WIBOR reference rates developed in compliance with the BMR rules regarding interest rate benchmarks, yet, upholding the key elements of the methodology of WIBID and WIBOR reference rates. The quantitative and qualitative tests have been carried out. The Consultation Paper presents the comparison of the WIBOR Index, calculated on the basis of a method adapted to the BMR standards, with the historical performance of the WIBID and WIBOR reference rates. The adjustment proposed by the GPW Benchmark refers mainly to rules  regarding preparation of the input data and merges key elements of WIBID and WIBOR methodology with the BMR input data priority recommendation detailed in Annex 1 of the BMR.

GPW Benchmark is strongly committed to deliver high quality indices and benchmarks, compliant with the BMR in order to ensure more safety for the financial system. The representativeness and reliability of the indices and benchmarks will enhance the confidence of the end users, credit and financial institutions, corporations, and, especially, consumers. The scope and character of the WIBID and WIBOR reference rates methodology adjustment provides the benchmark administrator with the flexible tool adjustable to the developments of the financial market and of the economic reality.

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