FIA has submitted a response to the European Commission’s consultation on reforming the EU Benchmarks Regulation (BMR).
In its response, FIA highlights that without significant reform, the BMR could expose benchmark users in the European Union to the threats that BMR was intended to protect them from, putting them at a competitive disadvantage to users of benchmarks in other jurisdictions.
The response details a number of proposals to reform the third country regime including; making compliance mandatory for EU and third country ‘systemic’ benchmarks only; creating a voluntary regime for all other EU and third country benchmarks; reforming the prohibition on the use of non-compliant systemic benchmarks; improving end-user visibility of which benchmarks are compliant; and removing uncertainty regarding key BMR provisions.
Read FIA's response to the European Commission's consultation here.
At the same time, FIA joined ISDA, the Asia Securities Industry and Financial Markets Association, the European Association of Corporate Treasurers, EMTA, and the Global Foreign Exchange Division of the Global Financial Markets Association in publishing an updated version of the associations' June 2020 recommendations, aimed at maintaining the intended protections of the BMR while reducing the potential for uncertainty, disruption and preventing EU investors being put at a competitive disadvantage versus non-EU entities.
Read the full briefing paper here.
- Benchmark Reform
- Regulatory Responses