Benchmark Regulation Timeline

HM Treasury proposes to extend the third-country transitional provisions so that UK supervised entities would be permitted to use benchmarks provided by third-country administrators until the end of 2030. They currently extend until 31 December 2025.

Expiry of transitional provisions for third-country benchmarks. Use in the EU by supervised entities of benchmarks provided by a third-country administrator is permitted where the benchmark is already used in the EU for financial instruments, financial contracts, or for measuring the performance of an investment fund where the benchmark is already referenced prior to 31 December 2025. An existing benchmark recognised as a critical benchmark can continue to be used for existing and new financial instruments, financial contracts, or for measuring the performance of an investment fund, until this date.

LIBOR expected to be phased out.

The EU Amending Regulation entered into force and applied from 13 February 2021. The Amending Regulation gives the European Commission the power to mandate the use of a designated replacement rate for any critical or third-country benchmark that is to be discontinued, is no longer representative, or is no longer authorised for use in the EU.

End of Brexit Transitional Period under EU Withdrawal Agreement.

The Financial Services Bill 2019-21 was introduced in the House of Commons. The Bill gives the FCA enhanced powers to determine that a critical benchmark is no longer representative of the market or economic reality that it is intended to measure, and that representativeness cannot be restored.

Report on the operation of third-country benchmarks in the EU (including the accessibility of the third-country administrator endorsement, recognition and equivalence regimes) to be submitted to the European Parliament and the Council of the EU by this date.

Expiry of transitional period under the original Benchmark Regulation. Exit Day for UK under Withdrawal Agreement currently falls within this period.

For EEA administrators who started providing benchmarks on or after 1 January 2018, they will need to be authorised or registered for their benchmarks to be used by supervised entities in the EEA.

For EEA administrators who started providing benchmarks between 1 July 2016 and 31 December 2017, they can only continue to provide benchmarks already provided before 1 January 2018 (including updates or modifications to those benchmarks). They cannot produce new benchmarks after 1 January 2018 unless they have become authorised or registered.

EEA管理员已经提供基准fore 1 July 2016 can continue to provide benchmarks without authorisation or registration until 1 January 2020 or, if they have submitted an application for authorisation or registration by that date, until their application is refused. This means they may continue to provide benchmarks already provided before 1 January 2018 (this includes updates or modifications to those benchmarks), and provide new benchmarks after 1 January 2018.