(3) For the purposes of ensuring the reliability and accuracy of a benchmark, two key elements to be disclosed by the administrator are the minimum quantity and quality of input data required to be able to apply the methodology of the benchmark and perform its calculation. In addition, the use of discretion in the determination of benchmarks increases their vulnerability to manipulation. In order to minimise this risk of manipulation, the administrator should disclose, as part of the key elements of the methodology, clear rules in relation to the circumstances when discretion can be used and how this discretion may be exercised

(4) In order for users and potential users to be sufficiently informed of the administrator’s process for reviewing the methodology it is important that the administrator publishes the policies and procedures related to this process together with the bodies involved and the relevant governance process in which it is embedded.

(5) Regulation (EU) 2016/1011 requires the information regarding the key elements of the methodology and the details of the internal review of the methodology to be publicly accessible for critical and significant benchmarks. In accordance with the principle of proportionality, this Regulation avoids putting an excessive burden on administrators of significant benchmarks, by allowing them to choose to reduce disclosure to a more limited set of elements or to disclose certain elements at a reduced level of detail.

(6) In order for a user or a potential user to understand how an administrator will consult on a proposed material change to a benchmark, the administrator should disclose in advance certain information on how it will conduct the consultation, and on the rationale for a proposed material changes including how it will assess the impact of a proposed change. In specific circumstances, such as in case of sudden market events, the administrator might conduct a consultation within a shorter time frame than the standard period otherwise set out.

(7) This Regulation is based on the draft regulatory technical standards submitted by the European Securities and Markets Authority to the Commission.

(8) The European Securities and Markets Authority has conducted open public consultations on the draft regulatory technical standards on which this Regulation is based, analysed the potential related costs and benefits and requested the opinion of the Securities Markets Stakeholder Group established in accordance with Article 37 of Regulation (EU) No 1095/2010 of the European Parliament and of the Council