On 22 October 2024, there was published on legislation.gov.uk The Critical Benchmarks Regulations 2024 together with an explanatory memorandum.
These Regulations come into force on 13 November 2024.
They specify two benchmarks, the WMR Closing Spot Rates (also commonly known in the market as the WMR London 4PM Closing Spot Rate or WMR 4PM Fix) and the ICE Swap Rate® (ISR), as ‘critical’ using powers under the UK Benchmarks Regulation (UK BMR).
Given this specification, the administrators of these benchmarks will become subject to more stringent regulatory requirements, reflecting the importance of the benchmarks to the operation of financial markets. The FCA will also have greater powers to intervene to address any potential market disruption.