This review was part of the 2024 Commission work programme and is a key element of the Commission’s efforts to reduce administrative and regulatory burdens on financial institutions. It aims at alleviating burden both on administrators of benchmarks and their users. Benchmarks are widely used by financial and non‑financial companies, as well as by investors in the EU, as a reference point for their financial instruments or contracts, such as derivatives, funds, loans or mortgages. The new regime will ensure that users keep access to a broad range of benchmarks, including those administered outside the EU, while maintaining a sufficient level of protection for such users. Benchmarks that are not considered as significant, and that do not use climate‑related labels (Paris‑aligned and Climate Transition benchmarks) will be removed from the scope of the Regulation.
Maria Luís Albuquerque, Commissioner for Financial Services and the Savings and Investments Union, said: “I welcome this political agreement – the first to be reached in the area of financial services under this new European Commission mandate. Benchmarks play a pivotal role in the global financial system. By mainly targeting benchmarks that are significant and those using EU climate-related labels, this agreement will reduce regulatory burden on smaller benchmark administrators. It will also ensure that market participants get access to a broad range of benchmarks matching their needs. This will help to drive a more competitive EU economy while contributing to the Commission’s simplification agenda”.
Under the agreement, the European Securities and Markets Authority (ESMA) has also been granted supervisory powers over entities endorsing third‑country benchmarks. This will rationalise the supervisory set‑up for third-country benchmarks.
Related links
Markets integrity: Benchmarks and market abuse
EU labels for benchmarks (climate, ESG) and benchmarks’ ESG disclosures
