The Commission has sent a mandate to ESMA for technical advice on possible delegated acts on the future regulation on indices used as benchmarks in financial instruments and financial contracts the Benchmarks Regulation). The mandate covers measures:

  • further specifying technical elements of definitions, in particular detailing what constitutes “making available to the public” for the purposes of the definition of an index;
  • specifying how the nominal amount of financial instruments other than derivatives, the notional amount of derivatives and the net asset value of investment funds are assessed;
  • to determine the conditions on which to assess whether there is objective reason for the provision of a benchmark or family of benchmarks in a third country and their endorsement for their use in the EU; and
  • to determine the conditions on which to assess whether the cessation or the changing of an existing benchmark could reasonably result in a force majeure event, frustrate or otherwise breach the terms of any financial contract or financial instrument which references such benchmark.

ESMA is to provide the advice within four months of the Regulation taking effect, which should happen in May or June.

(Source: Commission seeks technical advice on benchmarks)