Featured Product

    EC Consults on Review of Regulation on Financial Benchmark Indices

    October 11, 2019

    EC launched a consultation on review of the EU Benchmark Regulation, with the intent to gather stakeholder feedback on functioning of the benchmarks regime, two years after its entry into application. The consultation focuses primarily on the regime for critical benchmarks and the effectiveness of the mechanism for authorization and registration of EU benchmark administrators. A couple of broader topics have been also explored—namely, the categorization of benchmarks and the rules for third-country benchmarks. The consultation ends on December 06, 2019.

    The EC consultation is seeking views on various aspects of the reference regime, including the following:

    • The powers of the competent authorities with respect to critical benchmarks and their powers to withdraw or suspend the authorization or registration of an administrator
    • Whether the current supervisory framework for critical benchmarks is appropriate and whether the regulatory framework for non-material benchmarks and indices with regulated data is correctly calibrated
    • How to deal with benchmarks that are not significant in terms of their use in the Union or certain types of benchmarks that are less prone to manipulation such as regulated data benchmarks
    • The operation of the ESMA Register of Administrators, requesting a call for contributions on the measures applicable to climate indices, commodity indices, and indices of third countries 
    • Whether the set of supervisory powers is sufficient to ensure an effective supervision of the new climate-related benchmarks

    The Benchmark Regulation has been in application since January 01, 2018. Administrators of EU benchmarks have to apply for authorization or registration by January 01, 2020. For the administrators of critical benchmarks and third-country benchmarks, the transitional period expires on December 31, 2021. According to Article 54 of the Benchmark Regulation, EC must review and submit a report to the European Parliament and the Council on the Benchmark Regulation by January 01, 2020. In addition, subsequent to the political agreement on climate-related benchmarks, EC will be required to submit, by April 01, 2020, a report on the operation of third-country benchmarks in EU, including on the recourse that third-country benchmark administrators have had to endorsement, recognition, or equivalence. This report will have to analyze the consequences of the extension of the transitional period for the critical and the third-country benchmarks until December 31, 2021.  On the basis of the responses received, EC will prepare the report to the European Parliament and Council.


    Related Links

    Comment Due Date: December 06, 2019

    Keywords: Europe, EU, Banking, Securities, Benchmarks Regulation, Critical Benchmarks, Climate-Related Benchmarks, Interest Rate Benchmarks, IBOR, ESMA Register, EC

    Featured Experts
    Related Articles

    EC Rule on Contractual Recognition of Write Down and Conversion Powers

    The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.

    September 17, 2021 WebPage Regulatory News

    APRA Issues Further Guidance on Application of Securitization Standard

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.

    September 16, 2021 WebPage Regulatory News

    SRB Provides Update on Approach to Prior Permissions Regime

    The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.

    September 16, 2021 WebPage Regulatory News

    APRA Publishes FAQs on Capital Treatment of Overseas Subsidiaries

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.

    September 15, 2021 WebPage Regulatory News

    EBA Finalizes Guidance to Assess Breaches of Large Exposure Limits

    The European Banking Authority (EBA) published the final report on the guidelines specifying the criteria to assess the exceptional cases when institutions exceed the large exposure limits and the time and measures needed for institutions to return to compliance.

    September 15, 2021 WebPage Regulatory News

    PRA Finalizes Changes to Consolidated Prudential Rules Under CRD5/CRR2

    The Prudential Regulation Authority (PRA) issued the policy statement PS20/21, which contains final rules for the application of existing consolidated prudential requirements to financial holding companies and mixed financial holding companies.

    September 15, 2021 WebPage Regulatory News

    EBA Revises Guidelines on Stress Tests of Deposit Guarantee Schemes

    The European Banking Authority (EBA) revised the guidelines on stress tests to be conducted by the national deposit guarantee schemes under the Deposit Guarantee Schemes Directive (DGSD).

    September 15, 2021 WebPage Regulatory News

    Nordea Bank and EIB Sign Agreement to Fund Green Projects in Nordics

    The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.

    September 15, 2021 WebPage Regulatory News

    HKMA Endorses Industry Guidance to Support LIBOR Transition

    The Hong Kong Monetary Authority (HKMA) issued a circular, for all authorized institutions, to confirm its support of an information note that sets out various options available in the loan market for replacing USD LIBOR with the Secured Overnight Financing Rate (SOFR).

    September 14, 2021 WebPage Regulatory News

    OCC Issues Booklet on Supervision of Problem Banks

    The Office of the Comptroller of the Currency (OCC) issued a new "Problem Bank Supervision" booklet of the Comptroller's Handbook. The booklet covers information on timely identification and rehabilitation of problem banks and their advanced supervision, enforcement, and resolution when conditions warrant.

    September 13, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7481