The UK Financial Markets Law Committee (FMLC) has published a letter it has sent to Olivier Guersent, Director General, DG Financial Stability, Financial Services and Capital Markets Union, regarding the proposed Regulation on indices used as benchmarks in financial instruments and financial contracts (Benchmark Regulation).

In the letter, the FMLC states that it considers that legal uncertainty may arise in respect of the scope and application of the Benchmark Regulation in the context of foreign exchange rate sources and highlights these issues of legal uncertainty, with particular reference to non-deliverable forward contracts referencing emerging markets currencies.

View Letter to the European Commission on Non-Deliverable Forward Rate Sources under the Proposal for a Regulation on Indices used as Benchmarks in Financial Instruments and Financial Contracts, 23 October 2015