Shearman & Sterling LLP | Financial Regulatory Developments Focus | EU Regulation on Benchmarks Finalized
Financial Regulatory Developments Focus
  • EU Regulation on Benchmarks Finalized
    The final EU Regulation on Benchmarks was published in the Official Journal of the European Union. The Benchmark Regulation has been introduced in response to the numerous instances of benchmark manipulation that have emerged in recent years. In addition, the Benchmark Regulation is intended to harmonize across the EU the rules that have implemented the International Organization of Securities Commissions Principles for Financial Benchmarks and Principles for Oil Price Reporting Agencies. 

    The Benchmark Regulation sets out the authorization and registration requirements for benchmark administrators, including third country entities, requirements for governance and control of administrators, provides for different categories of benchmarks depending on the risks involved and imposes additional requirements on benchmarks considered to be critical, powers of national regulators to mandate, under certain conditions, contributions to or the administration of a critical benchmark.

    For the most part, the Benchmark Regulation will apply from January 1, 2018. However, certain provisions, giving powers to the European Securities and Markets Authority to prepare draft technical standards and to the Commission to adopt delegated legislation, have applied from June 30, 2016.

    View the Benchmark Regulation.