DBAG Index Committee (IC) DBAG Index Governance Structure

Transcription

1 DBAG Index Committee (IC) DBAG Index Governance Structure 2016

2 DBAG Index Governance Deutsche Börse Group 1

3 Deutsche Börse Group 2 Governance Arrangements for DBAG Indices DBAG assumes ultimate responsibility for all stages of index administration for all DBG Indices, however DBAG has outsourced certain tasks of the benchmark determination process, essentially the development and maintenance of its indices, to STOXX Ltd. Zurich. DBAG STOXX Ltd. Overall Responsibility of the Administrator Control Framework for Administrator Benchmark Design Periodic Review Transparency of Benchmark Determinatio ns Internal Oversight Audit Trails Oversight of Third Parties* Outsourcing Arrangement DBAG Index Committee** Data Sufficiency Content of Methodology Internal Controls over Data Collection Transition Audits Conflicts of Interest Hierarchyof Data inputs Changesto Methodology Complaints Procedures Co-operation with Reg Authorities NB. grey squares display respective IOSCO and ESMA/EBA principles * STOXX Ltd. ** Oversees the Benchmark determinationprocessas operated by STOXX Ltd.

4 Governance structure for DBAG Index Determination Deutsche Börse Group 3 DBAG DBAG Executive Board Index Committee (DBAG - IC) Advisory Board External STOXX Oversight Committee (STOXX OC) Product Approval Committee (PAC) Index Management Committee (IMC) Product Initiation Committee (PIC) Index Operations Committee (IOC) Product Development Operations

5 Deutsche Börse Group 4 DBAG s Responsibility regarding DBAG Index Determination The DBAG-IC has the responsibilities to oversee the following tasks as regards the Benchmark Design and Methodology which have been outsourced to STOXX Ltd.: General oversight over the benchmark design and any changes to the methodology, Periodic review of the definition of the benchmark and its methodology by oversight over the results of periodic methodology reviews provided by STOXX Oversight Committee (OC) and assessment of and decisions on STOXX recommendations, Assessment and approval of STOXX Product Approval Committee (PAC) suggestion for introduction / launch of new products, including checks on suitability based on Positioning Paper submitted by the STOXX PAC, Decision for decommissioning of existing indices based on STOXX PAC suggestion and decision and review on procedures for such terminations, Assessment of and decision on STOXX OC suggestion for new rules and rule changes, which may have a major impact on index value, large stakeholder impact, liability risks, risk of financial and/or reputational impact, Assessment of and decision for involvement of the Advisory Board or Public Consultation, In some cases the Index-IC may decide that a decision needs to be further escalated to the DBAG Executive Board Committee (DBAG ExCo).

6 Deutsche Börse Group 5 Outsourcing Partner Oversight The DBAG-IC has the following responsibilities as regards the Oversight of the integrity of Benchmark determination and control framework as provided by it s outsourcing partner STOXX Ltd.: Oversight of the management and operation of the DAX index family and other DBAG indices based on reports from STOXX regarding: Periodic Policy reviews by STOXX Risks and incidents Review of the adequacy of outsourcing partners (other than STOXX) Review of the adequacy of input data sources Assessment of the STOXX internal and external audits and assurance that the results of the audits are considered and pursued on the implementation of remedial actions highlighted in the results of these audits (includes assessment of STOXX ISAE-3402* and IOSCO compliance audits) Evaluate the operating effectiveness of the STOXX internal controls framework and conclude upon measures and processes to improve the controls framework * The ISAE 3402 report is a standardised audit report widely used. It provides assurance of the controls within the outsourcing organization.

7 Committee Membership Deutsche Börse Group 6

8 Deutsche Börse Group 7 For the DBAG Index Committee, competent members have been nominated in line with the Terms of Reference Member Voting Non-Voting Area Head MD+S, DBAG, Committee Chair x Deputy Area Head MD+S, DBAG, Vice Chair x Head of MD+S Regulation, DBAG x Head of Compliance Regulations, DBAG x Legal Counsel, DBAG x Criteria for nominations for the DBAG-IC are experience and know-how of each person as well as the level of seniority and relevant responsibilities within the company. Conflicts of interest are being avoided. The Committee Chairman is designated by the Executive Board of Deutsche Börse AG. The Committee Members as well as the Vice Chairman are nominated by the Committee Chairman and approved by the Executive Board of Deutsche Börse AG. The Committee Members and the Vice Chairman remain members until dismissed by the Committee Chairman or upon resignation. In the event that a position on the DBAG-IC becomes vacant, the Committee Chairman will nominate members to fill the position for approval by the Executive Board of Deutsche Börse AG. The Committee Chairman must ensure that the composition of the committee retains its nature including complementary roles. Besides replacing members the Committee Chairman may as well expand the DBAG-IC if considered necessary and approved by the Executive Board of Deutsche Börse AG. A Legal advisor is being included in the DBAG-IC as a non-voting member, while legal advice should be considered by the DBAG-IC when forming decisions.

9 Declaration of conflict of interest of committee members according to ESMA / EBA Guidelines Deutsche Börse Group 8 Members of the DBAG Index Commitee have no interests that may interferewith their ability to objectively make professional decisions, or to participatein the decision-makingprocesses during the courseof their proefssionalobligation.

10 Disclaimer Deutsche Börse AG does not represent that the information in this document is comprehensive, complete or accurate and excludes liability for any consequence resulting from acting upon the contents of this document, in so far as no wilful violation of obligations took place or, as the case may be, no injury to life, health or body arises or claims resulting from the Product Liability Act are affected. The use of the DAX indices or on any other indices supported by Deutsche Börse AG and of the respective index data for financial products or for other purposes requires a license from Deutsche Börse AG. Deutsche Börse AG and their licensors, research partners or data providers do not make any warranties or representations, express or implied, with respect to the timeliness, sequence, accuracy, completeness, currentness, merchantability, quality or fitness for any particular purpose of its index data. Deutsche Börse AG and their licensors, research partners or data providers are not providing investment advice through the publication of indices or in connection therewith. In particular, the inclusion of a company in an index, its weighting, or the exclusion of a company from an index, does not in any way reflect an opinion of Deutsche Börse AG or their licensors, research partners or data providers on the merits of that company. Financial instruments based on DAX indices or on any other indices supported by Deutsche Börse AG are in no way sponsored, endorsed, sold or promoted by Deutsche Börse AG or its affiliates. The most important product groups that Deutsche Börse AG and its affiliates provide include a range of more than 10,800 indices including the STOXX and DAX index families. The DAX and STOXX indices reflect Deutsche Börse AG s core values of transparency, reliability and innovation. Since the introduction of the DAX index more than 25 years ago and the EURO STOXX 50 in 1998, the index families have been continuously expanded.