Benchmarks are used in a wide range of markets to help set prices, measure performance, or work out amounts payable under financial contracts – this makes them integral to our strategic objective of ensuring that markets function well.
On 1 January 2018 the EU Benchmark Regulation (BMR) took full effect. It replaced the previous UK regulatory regime that captured 8 benchmarks that were specified by the Treasury, and significantly widened the scope of benchmark regulation across the EU. Following the UK’s withdrawal from the EU and the end of the transition period, the BMR has been brought into UK law (UK BMR).
Under the UK BMR, we are responsible for:
- authorisation and registration of UK benchmark administrators
- recognition of third country administrators
- endorsement of third country benchmarks
- supervision of benchmark administrators, users, and contributors in the UK
Our BENCH guidance sets out what parts of the Handbook are applicable to benchmark submitters and administrators.
UK firms involved in benchmark administration were required to submit their application through one of the prescribed routes (authorisation or registration) before 1 January 2020.
Third country benchmark administrators will need to be approved through the recognition or endorsement regimes, where an equivalence decision doesn’t apply to them, by 31 December 2022. The Government has announced that it intends to extend this until the end of 2025 in forthcoming legislation.
Benchmark administrators that are authorised or registered under UK BMR, and third country benchmarks, can be found on the UK Benchmarks Register.
Our work on benchmark regulation
In the UK, we work closely with the Treasury and the Bank of England to ensure the effective regulation of benchmarks.
Globally, we have also been influential in setting standards, through our co-chairing of the International Organisation of Securities Commissions (IOSCO) and the Financial Stability Board (FSB) committees.