Benchmarks Regulation—essentials
Benchmarks Regulation—essentials

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Benchmarks Regulation—essentials
  • Objectives and scope of the Benchmarks Regulation
  • Categories of benchmarks
  • Critical benchmarks
  • Low carbon benchmarks
  • Administrators
  • Contributors
  • Users
  • Third-country benchmarks
  • UK implementation of the Benchmarks Regulation
  • More...

Benchmarks Regulation—essentials

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

Benchmarks are vital to the pricing of numerous financial instruments and commercial and non-commercial contracts. Following reports of the manipulation of various benchmarks, such as  London Interbank Offered Rate (LIBOR), there were widespread concerns as to the integrity of benchmarks generally. This resulted in subsequent investigations and enforcement action by regulators into various benchmarks. It is in this context that on 18 September 2013 the European Commission (‘Commission’) published its proposal for a Regulation on indices used as benchmarks in financial instruments and financial contracts. Regulation (EU) 2016/1011 (the Benchmarks Regulation) was published in the Official Journal on 29 June 2016 and came into force on 30 June 2016. The majority of its provisions apply from 1 January 2018. Certain transitional provisions apply, including:

  1. an index provider providing a benchmark on 30 June 2016 has a transitional period until 1 January 2020 to apply for authorisation or registration as an administrator

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