Featured Product

    ESMA Responds to EC Consultation on Review of Benchmarks Regulation

    February 14, 2020

    ESMA published its response to EC consultation on review of the Benchmarks Regulation in EU. The ESMA response is focused on the cessation of critical benchmarks, parity between EU and third-country benchmarks, and transparency. EC will use this feedback to inform its recommendations on the effectiveness of the Benchmarks Regulation. These recommendations will be presented in a report to the European Parliament and Council.

    In response to the consultation, ESMA provided the following views on the key issues:

    • To enhance the critical benchmarks framework, ESMA proposed that competent authorities should be able to request an administrator to change its methodology. ESMA also proposed that the process of suspension or withdrawal of authorization or registration of an administrator and the assessment, by competent authorities, of the cessation procedures of the administrator should be clarified.
    • To ensure a level playing field between EU and third-country benchmarks, ESMA proposed to take into account different alternative approaches when defining the scope of the Benchmarks Regulation
    • To increase transparency to the benefit of benchmark users, ESMA proposed to include the list of both EU and third-country benchmarks in its register, together with an appropriate identification of benchmarks.

    Under the Benchmarks Regulation, administrators of third country and critical benchmarks must apply for authorization by December 31, 2021, for their benchmarks to continue to be used in EU. Application date for the remaining administrators expired on January 01, 2020. So far, 70 EU administrators are authorized or registered under the Benchmarks Regulation, along with the nine third-country administrators, including six who were recognized, two endorsements, and one administrator following a positive equivalence decision. The Benchmarks Regulation came into force on January 01, 2018 and seeks to increase the robustness and reliability of financial benchmarks.


    Related Links

    Keywords: Europe, EU, Banking, Securities, Benchmarks Regulation, Critical Benchmarks, Transparency, IBOR Reform, ESMA

    Related Articles

    EBA Finalizes Templates for One-Off Climate Risk Scenario Analysis

    The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.

    November 28, 2023 WebPage Regulatory News

    EBA Mulls Inclusion of Environmental & Social Risks to Pillar 1 Rules

    The European Banking Authority (EBA) recently published a report that recommends enhancements to the Pillar 1 framework, under the prudential rules, to capture environmental and social risks.

    October 31, 2023 WebPage Regulatory News

    BCBS Consults on Disclosure of Crypto-Asset Exposures of Banks

    As a follow on from its prudential standard on the treatment of crypto-asset exposures, the Basel Committee on Banking Supervision (BCBS) proposed disclosure requirements for crypto-asset exposures of banks.

    October 19, 2023 WebPage Regulatory News

    BCBS and EBA Publish Results of Basel III Monitoring Exercise

    The Basel Committee on Banking Supervision (BCBS) and the European Banking Authority (EBA) have published results of the Basel III monitoring exercise.

    October 18, 2023 WebPage Regulatory News

    PRA Updates Timeline for Final Basel III Rules, Issues Other Updates

    The Prudential Regulation Authority (PRA) recently issued a few regulatory updates for banks, with the updated Basel implementation timelines being the key among them.

    October 18, 2023 WebPage Regulatory News

    US Treasury Sets Out Principles for Net-Zero Financing

    The U.S. Department of the Treasury has recently set out the principles for net-zero financing and investment.

    October 17, 2023 WebPage Regulatory News

    EC Launches Survey on G7 Principles on Generative AI

    The European Commission (EC) launched a stakeholder survey on the draft International Guiding Principles for organizations developing advanced artificial intelligence (AI) systems.

    October 14, 2023 WebPage Regulatory News

    ISSB Sustainability Standards Expected to Become Global Baseline

    The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.

    September 18, 2023 WebPage Regulatory News

    IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance

    Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.

    September 18, 2023 WebPage Regulatory News

    BCBS Assesses NSFR and Large Exposures Rules in US

    The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.

    September 14, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8938