EC gives powers to critical benchmark firms

Commission is to give administrators additional powers over benchmarks considered to be ‘critical’.

The European Commission announced it has adopted an implementing regulation to establish a list of benchmarks of ‘particular importance’.

The implementing regulation is to ensure supervisors allow the continuation of ‘critical’ benchmarks - through the use of provision index regulation – where their termination could have “adverse impact on market participants”, the Commission said.

The Euro Interbank Offered Rate (EURIBOR), considered to be a ‘critical’ benchmark, will be the first index to be included in the implementing regulation.

In the regulatory text, the Commission said the EURIBOR benchmark underpins more than €180 billion worth of contracts, and its “crucial importance” must see the EU “enter into force as a matter of urgency”.

Supervisors will be able to request data contributions from banks on benchmarks included on the list, in the case of ensuring its continuation.   

According to the Commission, it will “review and update this list regularly”, and other benchmarks will be added “in due course”. 

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