On 28 April 2016, the European Parliament published a press release announcing that it had voted in plenary to adopt the proposed Regulation on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds (Regulation).

The Regulation creates 3 categories of benchmarks:

  • Critical benchmarks” which influence financial instruments and contracts with an average value of at least €500 billion.
  • Significant benchmarks” which influence financial instruments or financial contracts having a total average value of at least €50 billion.
  • Non-significant benchmarks” that do not fulfil the conditions set for the ‘significant category’.

The provisional text of the Regulation was published on 29 April 2016. The Regulation is expected to be formally adopted by the Council in May 2016. The official and finalised text will subsequently be published in the Official Journal of the EU and enter into force on the day after publication.