On 7 September 2023, the Bank of England (BoE) published a speech given by Arif Merali, senior advisor for the BoE, at a Libor transition panel discussion in London. Mr Merali answers questions on the transition away from Libor, considering how we got to where we are today, what remains to be done and lessons … Continue Reading
On 31 August 2023, the FCA published Market Study MS23/1.4: Wholesale Data Market Study: Update Report. The FCA launched the market study on 2 March 2023, following persistent user concerns about how well wholesale data markets were working. The study focuses on competition in the provision of benchmarks, credit ratings data and market data vendor … Continue Reading
On 28 July 2023, the Financial Stability Board (FSB) published its final reflections on the LIBOR transition. The end of June 2023 marked the end of the remaining USD LIBOR panel. Only three of the US dollar LIBOR settings will continue in a synthetic form after June 2023 and are intended to cease at end-September … Continue Reading
On 14 July 2023, the European Commission adopted a draft delegated act that extends the transitional period for third-country benchmark administrators as set out under (EU) 2016/1011 (“EU Benchmarks Regulation” or “EU BMR”). The current BMR transitional provisions are set to expire on 31 December 2023; the draft delegated act extends this period until 31 … Continue Reading
On 3 July 2023, the FCA issued a statement to confirm that the US dollar LIBOR bank panel ended on 30 June 2023. This was the last remaining LIBOR panel. The FCA notes that the overnight and 12-month US dollar LIBOR settings have now permanently ceased. The 1-, 3- and 6-month US dollar LIBOR settings … Continue Reading
On 31 May 2023, the FCA published Feedback Statement FS23/2: Decisions on US dollar LIBOR – feedback to CP22/21 (FS23/2). Previous consultation In November 2022, the FCA consulted on proposals to use its powers under the Benchmarks Regulation (BMR) to: After the consultation closed on 6 January 2023, the FCA considered the responses and decided … Continue Reading
On 30 May 2023, the European Securities and Markets Authority (ESMA) published a final report on the review of the regulatory technical standards (RTS) on the information to be provided in an application for authorisation and registration under the Benchmarks Regulation. Article 34(8) of the Benchmarks Regulation states that ESMA shall develop RTS to specify … Continue Reading
On 4 May 2023, the European Securities and Markets Authority (ESMA) published guidance produced by the Working Group on Euro Risk-Free Rates (the working group), for corporate lending products for implementing the recommendations on EURIBOR fallback trigger events and €STR-based EURIBOR fallback rates. The working group previously published recommendations for EURIBOR fallback trigger events and … Continue Reading
On 27 April 2023, the Financial Stability Board (FSB) published a statement to encourage final preparations for the USD LIBOR transition. The statement highlights the following:… Continue Reading
On 12 April 2023, the Bank of England (BoE) and the FCA published a statement on the cessation of the USD LIBOR panel, which will occur on 30 June 2023. The statement notes that the cessation date is less than 90 days away and sets out some reminders for firms as to the actions they … Continue Reading
On 3 April 2023, the FCA announced that it has decided to require LIBOR’s administrator, ICE Benchmark Administration Limited (IBA), to continue the publication of the 1-, 3- and 6-month US dollar LIBOR settings for a short period after 30 June 2023, using an unrepresentative ‘synthetic’ methodology (‘synthetic US dollar LIBOR’). The decision follows the … Continue Reading
On 20 March 2023, the FCA published a Dear CEO letter to benchmark administrators outlining the issues identified during its preliminary review on ESG benchmarks. This follows a previous Dear CEO letter, sent in September 2022, which highlighted the risk of poor disclosures for ESG benchmarks. The FCA flagged the importance of high quality ESG … Continue Reading
On 6 March 2023, the European Securities and Markets Authority (ESMA) and the EU Agency for Cooperation of Energy Regulators (ACER) signed an updated Memorandum of Understanding (MoU) which strengthens collaboration between the two institutions. The MoU notably incorporates new cooperation areas under the market correction mechanism (MCM) regulation and benchmarks related to the energy … Continue Reading
On 1 March 2023, the European Commission published a Call for Evidence: Review of the scope and third-country regime of the Benchmark Regulation. This initiative carries out a review mandate for the Commission to check whether the scope of the EU rules for financial benchmarks, as well as the rules for the use of non-EU … Continue Reading
On 15 February 2023, there was published in the Official Journal of the European Union (OJ) Commission Implementing Regulation (EU) 2023/313 of 15 December 2022 amending the implementing technical standards laid down in Implementing Regulation (EU) 2016/2070 as regards the benchmark portfolios, reporting templates and reporting instructions for the reporting referred to in Article 78(2) … Continue Reading
On 16 December 2022, the Financial Stability Board (FSB) issued a progress report on the transition from LIBOR and other benchmarks. The progress report: The progress report makes the following conclusions:… Continue Reading
On 15 December 2022, the European Commission published a Commission Implementing Regulation amending the implementing technical standards laid down in Implementing Regulation (EU) 2016/2070 as regards benchmark portfolios, reporting templates and reporting instructions for the reporting referred to in Article 78(2) of the Capital Requirements Directive IV. This Regulation amends Implementing Regulation (EU) 2016/2070 as … Continue Reading
On 25 November 2022, the European Securities and Markets Authority (ESMA) published a report on administrative sanctions imposed under the Benchmarks Regulation in 2021. This is the first annual sanctions report pursuant to the Benchmarks Regulation published by ESMA, as this is the first time a Member State national competent authority (NCA) (Germany) imposed an … Continue Reading
On 28 September 2022, the FCA updated their webpage on the new Benchmarks Register. The webpage now includes the following text: “Following Brexit, we have developed the new Benchmarks Register, which replaces the ESMA Register for UK supervised users, and UK and third country-based benchmark administrators that want their benchmarks to be used in the … Continue Reading
On 8 September 2022, the FCA published a Dear CEO letter concerning its supervision strategy for benchmark administrators. The Dear CEO letter outlines the FCA’s supervisory priorities for benchmark administrators being: Disclosure. The FCA has concerns that some benchmark administrators have not accurately described the economic reality that their benchmarks measure. It has also observed … Continue Reading
Introduction On 19 August 2022, the European Securities and Markets Authority (ESMA) published its response to the European Commission’s consultation on the regime applicable to the use of benchmarks administered in a third country. Earlier consultation The consultation covered the topic of the continued use by supervised entities of third country benchmarks and the potential … Continue Reading
On 8 July 2022, the European Securities and Markets Authority (ESMA) issued a Consultation Paper on the review of the regulatory technical standards (RTS) on the form and content of an application for recognition under the Benchmarks Regulation (BMR). Article 32(9) of the BMR states that the ESMA may develop RTS to determine the form … Continue Reading
The FCA opened a consultation on 30 June seeking views on winding down the 1, 3 and 6-month synthetic sterling LIBOR settings and requesting information on market participants’ exposure to US dollar LIBOR. Since 31 December 2021, publication of 24 LIBOR settings ended, leaving only five US dollar LIBOR settings continue to be calculated using … Continue Reading
