Navigation path

Additional tools

Benchmarks

The integrity of benchmarks is critical to the pricing of many financial instruments, such as interest rate swaps, and commercial and non-commercial contracts, such as loans and mortgages, and risk management. Any risk of manipulation of benchmarks may undermine market confidence, cause significant losses to investors and distort the real economy.

The changes proposed by the Commission to its market abuse and criminal sanctions proposals alone will not improve the way benchmarks are produced and used. EU regulation is necessary to improve the functioning and governance of benchmarks and to ensure that benchmarks produced and used in the EU are robust, reliable representative and fit for purpose and that they are not subject to manipulation.

To this end, the Commission has adopted a proposal for a Regulation on indices used as benchmark in financial instruments and financial contracts:

Entry into force of the Benchmark Regulation – 30.06.2016

Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 has been published in the Official Journal of the European Union and enters into force on 30 June 2016.

Adoption of the Regulation of financial benchmarks by the European Parliament – 28.04.2016

On 28 April 2016 the European Parliament approved by a large majority in the plenary session the adoption of the proposed Regulation on financial benchmarks, following a political agreement by the Parliament and the Council in November 2015.

The Regulation will enter into force following formal adoption by the Council, which is expected in May 2016, and publication in the official journal.

Mandate to ESMA – 11.02.2016

On 11 February 2016 the Commission sent a mandate to ESMA for technical advice on possible delegated acts concerning the future Regulation of the European Parliament and of the Council on indices used as benchmarks in financial instruments and financial contracts.

Agreement between the Parliament and the Council on a Regulation of financial benchmarks – 25.11.2015

European Parliament agrees negotiating mandate for regulation of financial benchmarks – 19.05.2015

EU Council backs European Commission proposal to fight against the manipulation of financial benchmarks – 13.02.2015

Commission proposal for a Regulation on indices used as benchmarks in financial instruments and financial contracts – 18.09.2013

Consultation on benchmarks and market indices – 05.09.2012

Commission proposals to prohibit and criminalise manipulation of benchmarks – 25.07.2012