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FCA Prepares UK Benchmarks Register

As part of its preparations around Brexit, the UK’s Financial Conduct Authority (FCA) has drafted a UK Benchmarks Register. The Register mirrors that maintained by the European Securities and Markets Authority (ESMA) and will be used in the event that the UK leaves the EU without a negotiated withdrawal treaty or an associated implementation period.

In a ‘no-deal’ scenario, the FCA Register will replace ESMA’s for all UK supervised users, and UK and third-country based benchmark administrators that want their benchmarks to be used in the UK. On Exit day, the FCA plans to temporarily copy information from the ESMA register onto the UK Benchmarks Register. This information will stay on the UK Benchmarks Register for two years unless it is subsequently removed through changes to the proposed UK Benchmarks Regulation.

For benchmark administrators, contributors and users based in the UK, or those from third-countries that either provide benchmarks to, or use benchmarks from the UK market, Brexit has brought further complexity to what is already a highly challenging Regulation. If firms are to ensure compliance during this transition period, it is essential they have access to high-quality, timely and accurate data on the benchmarks landscape.

To help firms navigate the uncertainties of BMR, RIMES has developed an award-winning RegTech solution helps firms keep up-to-date with which benchmarks and benchmark administrators are authorized under BMR – or indeed, if enacted, under the UK’s Benchmark Regulation.

Through effective pre-trade controls, RIMES’ RegFocus BMR Control enables full compliance with BMR/UK BMR without the high costs and complexity associated with the development of similar in-house capabilities. This service also provides benchmark users with index substitution information in the event that a benchmark ceases to be authorized; enabling users to demonstrate compliance with Article 28 (2) of BMR, which stipulates that such substitutions be readied.

Brexit will muddy the already opaque waters of BMR, but by partnering with RegTech experts like RIMES firms can ensure they remain compliant while keeping control of costs.

Contact us to receive more information about RIMES RegFocussm BMR Control, the most advanced benchmarks validation solution on the market, which solves all regulatory obligations under the new Benchmarks Regulation.

 

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