O, Boze... WHAT IS A BENCHMARK?
Benchmarks are “prices, estimates, rates, indices or values that are:
a. Made available to users, whether free of charge or for payment;
b. Calculated periodically, entirely or partially by the application of a formula or another method of calculation to, or an assessment of, the value of one or more underlying interests;
c. Used for reference for purposes that include one or more of the following:
•determining the interest payable, or other sums due, under loan agreements or under other financial contracts or instruments;
•determining the price at which a financial instrument may be bought or sold or traded or redeemed, or the value of a financial instrument; and/or
•measuring the performance of a financial instrument."
Benchmarks help to set prices, measure performance, or work out amounts payable under financial contracts in a wide range of markets.