The European Securities and Markets Authority (ESMA) on Thursday published a consultation paper regarding its draft regulatory and implementing technical standards to govern the operation of financial benchmarks.

In the wake of the LIBOR trading scandal, regulators around the world have been seeking to bolster the integrity of the benchmarks that are critical to the pricing of many financial products.

The draft standards set out ESMA’s approach, which aims to improve the governance and operation of benchmarks in order to ensure the accuracy, robustness and integrity of these metrics throughout the European Union.

The new rules will also clarify the behaviours and standards expected of benchmark administrators and contributors, designed to ensure that “benchmarks are produced in a transparent and reliable manner and so contribute to well-functioning and stable markets, and investor protection,” the consultation paper says.

“Benchmarks lie at the heart of financial markets as they help to price assets and measure the performance of investments. Therefore, we need to ensure their accuracy and integrity: fair play is essential for investors,” says Steven Maijoor, ESMA chairman, in a news release.

“The regulation sets out to do so by providing a common regulatory framework under which benchmarks are provided, produced and used thoroughly. This will help to restore trust both in benchmarks and financial markets,” he adds.