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Review of the scope and third-country regime of the Benchmark Regulation

Banking and financial services

This initiative carries out a review mandate for the Commission to check whether the scope of the EU rules for financial benchmarks, as well as the rules for the use of non-EU financial benchmarks are still fit for purpose, by 15 June 2023. The Commission will propose to amend the rules, in particular to ensure EU banks and investment funds retain access to the broadest array of the world’s benchmarks.

Links

Public consultation

ID: 13762

Lobbying Activity

21 responses

Euronext Demands Level Playing Field for Global Benchmark Providers

Euronext, 29 Mar 2023

Euronext urges the Commission to maintain a level playing field between EU and third-country administrators. They argue that the current framework provides sufficient clarity and does not require adjustment. Any regulatory relief granted to foreign providers must also be extended to EU firms.
This ensures EU providers remain competitive against foreign firms by preventing regulatory arbitrage.
Non-EU administrators would lose potential competitive advantages from proposed lighter regulatory requirements.

Deutsche Börse Urges Focused Rules for Third-Country Benchmarks

Deutsche Börse AG, 29 Mar 2023

Deutsche Börse argues against indiscriminate deregulation and supports limiting the regime to strategic benchmarks. They advocate for equal rules for all administrators and an opt-in mechanism for voluntary compliance.
This approach maintains fair competition for compliant administrators while reducing administrative burdens.
EU-based users could lose access to vital commodity benchmarks if they are incorrectly designated as strategic.

LSEG urges EU to simplify third-country benchmark regulations

London Stock Exchange Group, 29 Mar 2023

LSEG recommends limiting the regulation's scope to critical benchmarks that are systemically important. They advocate for an improved recognition route to replace the complex endorsement option.
Simplifying the regime would reduce significant recurring costs and administrative burdens for LSEG.
Regulators lose oversight over benchmarks that no longer fall under the narrowed scope.

FESE Urges Level Playing Field in EU Benchmark Review

Federation of European Securities Exchanges, 22 Mar 2023

FESE demands that any deregulation applies equally to EU and non-EU firms to maintain fair competition. They want strategic benchmarks defined by clear, objective criteria and favor opening EU ESG labels to international providers. FESE also recommends deleting redundant benchmark statement requirements.
This would reduce regulatory burdens and compliance costs for administrators of smaller financial indices.
Supervisory authorities lose direct oversight of smaller benchmarks that are removed from the regulatory scope.

Consultation response

BVI Bundesverband Investment und Asset Management e.V., 17 Jan 2024

BVI generally support the proposal of the EU Commission to further streamline the EU framework for indices and critical and (non) significant benchmarks. The BMR helps to strengthen the confidence in the financial markets and helps to prevent manipulation of financial indices. Investment funds are…

Consultation response

ING Group, 8 Jan 2024

ING welcomes the opportunity given by the European Commission to provide feedback on the latest proposal amending the EU Benchmarks Regulation. In general, ING is supportive of the proposed amendments that will provide for an improved global level playing field for benchmarks, which is crucial for…

Consultation response

Association Française de la Gestion financière, 22 Dec 2023

AFG welcomes the opportunity given by the European Commission to give its views on the latest proposal amending the Benchmark Regulation. We regret that the legislator wants to move fast on this file considering the drastic changes proposed i.e. removing all non-significant benchmarks (EU and…

S&P Global urges EU to narrow benchmark regulation scope

S&P Global, 29 Mar 2023

S&P Global supports focusing regulation on a smaller set of designated systemically important benchmarks. They also request extending the third-country transition period until the end of 2025. Additionally, the group urges making any future ESG benchmark labels voluntary for administrators.
A narrower scope would reduce the high costs and complexity of administrative compliance.
Investors lose regulatory protections for benchmarks that no longer meet narrower criteria for oversight.

European Co-operative Banks Seek Continued Third-Country Benchmark Access

European Association of Co-operative Banks, 28 Mar 2023

The organization calls for a temporary suspension of current rules until 2026 and a shift to regulating only systemically important benchmarks. They also recommend delaying any new EU environmental labels for benchmarks until other sustainability rules are finalized.
This would prevent disruption to their global investment funds and reduce compliance barriers for foreign administrators.
End-clients and investors lose out if funds must abruptly stop tracking established global indexes.

Consultation response

European Fund and Asset Management Association, 23 Jan 2024

EFAMA supports the spirit of the revisions to the Benchmarks Regulation which seek to introduce greater proportionality into the regulation of index providers. We believe more proportionate rules would ensure the integrity of indices without disproportionately increasing costs for investors and…

EFAMA urges narrower scope for EU financial benchmark rules

European Fund and Asset Management Association, 29 Mar 2023

EFAMA proposes narrowing the regulation to only include strategic benchmarks and making other usage free. They also want to extend the transition period until the end of 2025.
This allows asset managers to access global indices without facing high compliance costs.
Large index providers lose their market advantage over smaller competitors without EU representation.

Consultation response

International Swaps and Derivatives Association, 23 Jan 2024

ISDA very much welcomes the European Commission's recognition of the problems caused by the current drafting of the Benchmarks Regulation (BMR), and the careful thought and consideration that has been given to addressing them. We strongly support the aim of establishing a third-country regime that…

ISDA urges positive designation for EU benchmark regulation

International Swaps and Derivatives Association, 29 Mar 2023

Only systemically important benchmarks should face mandatory compliance requirements to ensure market certainty. The associations support a voluntary regime for other EU and third-country benchmarks. They also request provisions to protect existing contracts when a benchmark becomes prohibited.
Firms would face lower compliance burdens and avoid disruption to legacy contract payments.
Regulators would lose oversight of many benchmarks, potentially reducing transparency for individual investors.

Austrian Savings Banks Support Global Benchmark Access

Österreichischer Sparkassenverband, 17 Mar 2023

The association supports the Commission's plan to ensure continued access to non-EU benchmarks. This ensures that banks and investors can use relevant data from outside Europe.
Continued access to global benchmarks avoids operational disruptions and technical barriers for banks.

Consultation response

Europex - Association of European Energy Exchanges, 23 Jan 2024

BMR review: call to maintain and improve small commodity benchmark exemption, in case Annex II commodity benchmarks are to remain in scope Brussels, 23 January 2024 | Europex welcomes the Commissions proposal to review the Benchmark Regulation (BMR) with regard to its scope, the use of benchmarks…

FIA and partners urge EU to narrow benchmark regulation scope

Futures Industry Association, Inc., 29 Mar 2023

The associations request that only systemically important benchmarks face mandatory compliance requirements. They call for an immediate extension of the transition period for non-EU benchmarks. Additionally, they want legacy transactions protected if a benchmark is later prohibited.
This would lower compliance costs and maintain competitive access to global financial markets.

Consultation response

MSCI Limited, 22 Jan 2024

MSCI welcomes the review of the European Union Benchmark Regulation (BMR) 2 by the European Commission (the Commission) and its broader efforts to enable the long-term competitiveness of the European Union (EU). We support the Commissions proposal to amend the BMR and to reduce the administrative…

German banks urge removal of non-strategic benchmarks from BMR

Die Deutsche Kreditwirtschaft, 28 Mar 2023

The organization supports a general removal of non-significant and non-strategic benchmarks from the regulation's scope. They also call for the transitional period to be extended until December 2025.
This would preserve the competitive strength of EU banks in international markets.

Consultation response

Association Française des Marchés Financiers, 23 Jan 2024

Please note that the English text below is the same as the attached French text. The French text includes proposed amendments in English. AMAFI supports and modifies Amendment 31 of the European Parliament's report, which concerns Article 1.11 of the Proposal. AMAFI's request concerns indices…

Consultation response

Argus Media Ltd, 28 Mar 2023

Argus welcomes the opportunity to respond to the European Commissions call for evidence for the review of scope and third-country regime of the Benchmark Regulation. The BMR recognizes important differences between financial and commodity benchmarks. It introduced a specific regime for commodity…

Consultation response

Index Industry Association, 29 Mar 2023

The Index Industry Association (IIA) thanks the Commission for the chance to respond to its Call for Evidence on the review of the scope and regime for non-EU benchmarks. The response can be found in the attached document.