EU Equivalence for Australian and Singaporean Benchmarks

Two equivalence decisions under the EU Benchmark Regulation have been published in the Official Journal of the European Union. The first decision declares as equivalent to the EU regime the legal and supervisory framework of Australia applicable to the administrators of financial benchmarks that are declared significant benchmarks by the Australian Securities and Investments Commission. The second decision declares as equivalent to the EU regime the legal and supervisory framework of Singapore applicable to the administrators of financial benchmarks that are designated as designated benchmarks by means of the Securities and Futures (Designated Benchmarks) Order 2018. Both decisions will enter into force on August 19, 2019.

The EU Benchmark Regulation, which took effect across the EU in January 2018, sets out the authorization and registration requirements for benchmark administrators, including third-country entities, and the requirements for governance and control of administrators. Under transitional provisions, no financial instruments and financial contracts in the EU may start to reference a benchmark provided by a third-country administrator on or after January 1, 2020, unless the benchmark and administrator are included in the register maintained by the European Securities and Markets Authority following an equivalence decision by the European Commission, or recognition or endorsement by a national regulator. However, a benchmark provided by a third-country administrator that is already being referenced in financial instruments and financial contracts in the EU on January 1, 2020, may continue to be referenced in those contracts and financial instruments. The transitional date is due to be extended to the end of 2021 under a proposed amendment to the EU Benchmark Regulation, which amendment focuses on introducing two new types of benchmark for sustainable finance.

View the Australian equivalence decision for benchmarks (Commission Implementing Decision (EU) 2019/1274).

View the equivalence decision for Singaporean benchmarks (Commission Implementing Decision (EU) 2019/1275).

View ESMA's register for third-country benchmarks.

View the text of the proposed amendments to the EU Benchmark Regulation.

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