The provision of benchmarks is a regulated activity in the European Union (EU) and in the United Kingdom (UK). The legal framework governing the provision and use of benchmarks is set out in the Benchmarks Regulation (BMR) that introduces an obligation for European and UK benchmark administrators to be authorized or registered if they wish to provide their benchmarks for use by supervised entities in the EU, and for third-country benchmark administrators to have a license to provide their benchmarks in the EU.1 BMR has been applicable to UK and EU administrators since January 1, 2020, but allows third-country benchmark administrators to benefit from a longer transitional period.
While BMR will remain part of the retained EU law applicable in the UK, following the expiry of the Brexit implementation period on December 31, 2020, the UK and the EU will have two separate – yet similar, at least initially – legal frameworks governing the provision of benchmarks.
We have published an article highlighting some of the divergences that are starting to arise between the EU and UK benchmark regimes. It also provides an overview of the new upcoming EU and UK requirements applicable to benchmark administrators, as well as a summary of the key ongoing legislative and regulatory developments, together with views on application timelines.