EP has voted in favour of the Benchmarks Regulation. The Regulation aims to prevent conflicts of interest from arising and resulting in benchmark manipulation. It creates three categories of benchmarks that are subject to different supervisory regimes depending on how much influence they have over the stability of financial markets. A “critical” benchmark influences financial instruments and contracts with an average value of at least €500 billion, or has no or very few appropriate substitutes and if it were to cease to be provided, there would be a significant and adverse impact on market stability.
“Significant” benchmarks influence financial instruments or financial contracts with total average value of at least €50 billion. All other benchmarks will be “non-significant”. The Regulation will require all benchmark administrators to be authorised and produce “benchmark statements”. Those who administer critical benchmarks will also need to meet organisational requirements designed to prevent conflicts of interest. The Regulation now needs to be officially approved by the Council and will then be published in the OJEU to enter into force on the following day. (Source: EP votes for Benchmarks Regulation and EP legislative resolution on Benchmarks Regulation)