(1) An ATS Operator may only trade Investments that reference to an underlying benchmark or index provided by a Price Information Provider where it has undertaken appropriate due diligence to ensure that the Price Information Provider, on an on-going basis, meets the requirements set out in (3).
(2) A Price Information Provider is a price reporting agency or an index provider which constructs, compiles, assesses or reports, on a regular and systematic basis, prices of Investments, rates, indices, commodities or figures, which are made available to users.
(3) For the purposes of (1), the Price Information Provider must:
(a) have fair and non-discriminatory procedures for establishing prices of Investments which are made public.
(b) demonstrate adequate and appropriate transparency over the methodology, calculation and inputs to allow users to understand how the benchmark or index is derived and its potential limitations;
(c) where appropriate, give priority to concluded transactions in making assessments and adopt measures to minimise selective reporting;
(d) be of good standing and repute as an independent and objective price reporting agency or index provider;
(e) have a sound corporate governance framework;
(f) have adequate arrangements to avoid its staff having any conflicts of interest where such conflicts have, or are likely to have, a material adverse impact on price establishment process; and
(g) adequate complaint resolution mechanisms to resolve any complaints about the Price Information Provider's assessment process and methodology.