Benchmarks Regulation

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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.

See also