A person with proprietary rights to a benchmark shall set the conditions for licensing agreements and make them available to CCPs and trading venues upon request free of charge. The conditions shall include the following:
the scope of use and content of information for each use under the licensing agreements, clearly identifying in each case confidential information;
the conditions for redistribution, if allowed, of information by CCPs and trading venues;
the technical requirements for the delivery of the service;
the fees and the conditions for paying them;
the conditions under which the agreement expires taking into consideration the lifespan of financial instruments that reference the benchmark;
the contingency circumstances and the relevant measures to regulate the continuation, transitional periods and interruption of the service during a contingency period, which:
allow for termination in an orderly manner;
ensure that termination is not triggered by minor breaches of the contract and that the relevant party is given a reasonable amount of time to remedy any breach that does not give rise to immediate termination;
the governing law and allocation of liabilities.
The licensing agreement shall require that CCPs, trading venues and persons with proprietary rights to a benchmark establish adequate policies, procedures and systems to ensure the following:
implementation of the service without undue delay according to a prearranged schedule;
keeping up to date all information provided by the parties throughout the duration of the access arrangement, including information that could have a reputational impact;
a communication channel between the parties that is timely, reliable and secure during the lifetime of the licence agreement;
consultation where any change to either entity's operations is likely to have a material impact on the licence agreement or on the risks to which the other entity is exposed and notification within a reasonable notice period before any change to either entity's operation is implemented;
the provision of information and the relevant instructions to transmit and use it through the technical means agreed;
the provision of up-to-date information to persons with proprietary rights to a benchmark regarding the redistribution, if allowed, of information to clearing members of CCPs and members or participants of trading venues;
resolution of disputes and termination of the agreement occurs in an orderly manner according to the identified circumstances.
Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.