1. Interest rates - reference rates - European Union.
Regulation (EU) 2016/1011 of the European Parliament and of the EU Council of 2016.
The Benchmarks Regulation relates to indices used:
- As benchmarks in financial instruments and financial contracts or
- To measure the performance of investment funds.
The Benchmarks Regulation imposed new requirements on firms that provide, contribute to or use a wide range of interest rate, currency, securities, commodity and other indices and reference prices.
Most of the new rules apply with effect from 1 January 2018, but some provisions relating to critical benchmarks were brought into effect earlier.
The rules present a significant implementation challenge, particularly where EU firms reference non-EU benchmarks in securities or derivatives, or use them in the management of investment funds.
2. Interest rates - reference rates - UK.
The Benchmark Regulation as applicable in the UK since the end of the Brexit Transition period on 31 December 2020, as part of retained EU law in the UK.