The Regulation (EU) 2016/1011 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds entered into force on 30 June 2016.
The Regulation is fully applicable from 1 January 2018. However, certain transitional provisions are foreseen:
- Index providers providing a benchmark as of 30 June 2016 are allowed to apply for authorization or registration as an administrator until 1 January 2020.
- Index providers may continue to provide an existing benchmark until 1 January 2020.
What is it?
The aim of a common regulatory framework on Benchmarks at the European Union level is to ensure that benchmarks are robust and appropriately used by market participants –administrators, contributors and end users-.
In order to ensure the accuracy, integrity and reliability of benchmarks the Regulation sets out requirements for:
- Implementing governance arrangements to control conflicts of interest.
- Improving the quality of input data and methodologies.
- Ensuring transparency.
Guidelines, Recommendations, Questions and Answers
Guidelines published by ESMA and adopted by the CNMV
ESMA and CNMV statements
Questions and Answers
Supervisory convergence instruments
- FSB Statement to Support Preparations for LIBOR Cessation (23/11/2021)
- IOSCO Statement on Credit Sensitive Rates (08/09/2021)
- Recommendations from the Working Group on Euro Risk Free Rates on the switch to risk free rates in the interdealer market (26/07/2021)
- IOSCO statement on Benchmarks Transition (2/06/2021)
- Global Transition Roadmap for LIBOR (2/06/2021)
- FSB paper reviewing overnight risk-free rates and term rates (2/06/2021)
- FSB OSSG Supports Use of the ISDA Spread Adjustments in Cash Products (2/06/2021)
- The working group on euro risk-free rates issues recommendations on EURIBOR fallback trigger events and €STR-based EURIBOR fallback rates (11/05/2021)
- Commission addresses risks of Libor cessation (24/07/2020)
- Report on preparations for benchmark rate reforms (July 2020)
- Report by the working group on euro risk-free rates On the transfer of EONIA’s cash and derivatives markets liquidity to the €STR (19/02/2020)
- Report by the working group on euro risk-free rates on €STR fallback arrangements (12/11/2019)
- EMMI granted authorisation by Belgian FSMA for provision and administration of EONIA under EU BMR (11/12/2019)
- EMMI, the administrator of Euribor, confirms the successful completion of the new methodology (28/11/2019)
- High level recommendations for fallback provisions in contracts for cash products and derivatives transactions referencing EURIBOR published by the working group on euro risk-free rates (6/11/2019)
- Report by the working group on euro risk-free rates on the financial accounting implications of the transition from EONIA to the €STR and the introduction of €STR-based fallbacks for EURIBOR (5/11/2019)
- Report by the working group on euro risk-free rates On the risk management implications of the transition from EONIA to the €STR and the introduction of €STR-based fallbacks for EURIBOR (17/10/2019)
- The working group on risk-free rates makes available communication material which interested parties can use in their own communication and education efforts:
- The ECB begins the publication of the new index €STR (2/10/2019)
- The working group on euro risk-free rates issues recommendations on the transition from EONIA to €STR for cash and derivatives products (19/08/2019)
- IOSCO publishes a statement on communication and outreach regarding benchmarks transition (31/07/2019)
- CNMV's Information for the sector: Process of adaptation of interest rate benchmarks to the new European Regulation on Benchmarks (29/07/2019)
- Recommendations of the working group on euro risk-free rates on the EONIA to €STR legal action plan (16/07/2019)
- The FSMA authorises EMMI as administrator of the EURIBOR benchmark (05/07/2019)
- The ECB publishes a letter to CEOs on banks' preparation with regard to interest rate benchmark reforms and the use of risk-free rates (04/07/2019)
- FSB publishes user guide for overnight risk-free rates (04/06/2019)
- ECB announces the spread to be used by EMMI in new EONIA methodology as well as the ISIN and FISIN codes for €STR (31/05/2019)
- EMMI, the administrator of Eonia, informs on the adoption of the new methodology of Eonia which will take effect on 2 October 2019 (31/03/2019)
- EMMI, the administrator of the critical benchmark Euribor, has applied for authorisation under Benchmark Regulation (06/05/2019)
- The administrator of Eonia, EMMI, consults on the on the recommendations for Eonia of the Working Group on euro risk-free rates (20/03/2019)
- The working group on euro risk-free rates recommends transition path from EONIA to €STR and €STR-based forward-looking term structure methodology (14/03/2019).
- ECB announces start date for €STR (14/03/2019)
- ECB replaces the acronym “ESTER” with “€STR” (12/03/2019)
- ESMA statement on impact of no deal Brexit to the application of some provisions of Benchmarks Regulation (07/03/2019)
- The administrator of Euribor, EMMI, has published the summary of stakeholder feedback to the second consultation on the new methodology and a blueprint of the methodology (12/02/2019)
- Guiding principles for fallback provisions in new contracts for euro-denominated cash products (06/02/2019)
- Guidelines issued by ESMA on non-significant benchmarks (06/02/2019)
- UK Government publication on EU Benchmarks Regulation in Brexit (23/11/2018).
- FSB publishes progress report on reforming major interest rate benchmarks (14/11/18)
- The Working group on euro risk-free rates has published a high-level implementation plan (01/10/18)
- The European Commission adopts 10 delegated acts on Benchmarks Regulation(13/07/18)
- The FSB issues a statement on reforms to interest rate benchmarks (12/07/2018)
- ESTER is recommended as euro risk-free rate (13/09/18)
- ECB announces methodology for calculating Euro Short-Term Rate (ESTER) (28/06/2018)
- CNMV Information for the sector: Application of the new Financial Benchmarks Regulation (20/03/18)
- IOSCO publishes a statement aimed at users of benchmark references (12/01/2018)
- Working Group on Euro Risk-Free Rates
- FSB: Reforming Major Interest Rate Benchmarks (22/07/14)
- IOSCO Principles for Financial Benchmarks (July 2013)