Recently, the European Commission has adopted an Implementing Regulation establishing a list of ‘critical’ benchmarks, i.e. those indexes that are of particular importance for financial markets and consumer contracts. This enables supervisors to make use of certain provisions of the Benchmarks Regulation (EU 2016/1011) in advance of its entry into application in 2018. EURIBOR (Euro Interbank Offered Rate), one of the most important interest rate indexes in the EU, is the first to be included in the list established by today’s Implementing Regulation.
The Commission will review and update this list regularly and will include, in due course, other benchmarks that fulfil certain criteria. This Implementing Regulation will ensure that supervisors are in a position to allow the continuation of ‘critical’ benchmarks where their cessation would have a severe adverse impact on market participants and undermine the functioning and integrity of markets. In particular, classifying EURIBOR as a ‘critical’ benchmark will facilitate supervisors in requesting data contributions from banks, if they deem it necessary to ensure the benchmark’s representativeness.
Read the text of the Regulation.
The content provided in these articles is intended solely for general information purposes, and is provided with the understanding that the authors and publishers are not herein engaged in rendering regulatory or other professional advice or services. Consequently, any use of this information should be done only in consultation with qualified legal counsel. The information in these articles was posted with reasonable care and attention. However, it is possible that some information in these articles is incomplete, incorrect, or inapplicable to particular circumstances or conditions. We do not accept liability for direct or indirect losses resulting from using, relying or acting upon information in these articles.
- The FTSE Russell ICB Reclassification is Coming. Are You Ready?
- 2020 and Buy-Side Compliance: A Year of Awakening and Investment
- ETF answers from our experts
- RIMES Launches Unique Index Identifier to Give Investment Management Firms the Data Insights They’ve been Unable to Access Until Now
- Data Supply Chain Optimization Within Investment Management