Benchmarks Regulation

Regulation (EU) 2019/2089  as regards EU Climate Transition Benchmarks, EU Paris-aligned Benchmarks and sustainability-related disclosures for benchmarks was published in the Official Journal of the European Union on 9 December 2019. It amends the Benchmarks Regulation (EU) 2016/1011  (“BMR”) by adding provisions with respect to EU Climate Transition Benchmarks, EU Paris-aligned Benchmarks and sustainability-related disclosures for benchmarks. 

Article 51 of the BMR has been amended in order to extend the transitional provisions applicable to third country benchmarks until 31 December 2021. ESMA has updated Q 9.3 of its Q&A on BMR accordingly.

Additional transitional provisions have been added to Article 51 to allow the provision and the use of existing benchmarks that have been recognised as critical benchmarks for existing and new financial instruments, financial contracts, or for measuring the performance of investment funds until 31 December 2021 (instead of 1 January 2020), or where the index provider submits an application for authorisation, unless and until such authorisation is refused.

The transitional provisions for EU-based index providers of existing benchmarks, which have not been recognised as critical benchmarks, remain unchanged. These benchmarks may be used by supervised entities until 1 January 2020 or, where the index provider submits an application for authorisation or registration, unless and until such authorisation or registration is refused. In order to enable EU supervised entities using benchmarks to be aware of which applications for authorisation/registration of EU-based index providers are pending, a list with those EU-based index providers is available on ESMA’s website. ESMA will update this information until the first week of January 2020.