Amending Regulation (EU) 2016/1011 as regards the scope of the rules for benchmarks, the use in the Union of benchmarks provided by an administrator located in a third country, and certain reporting requirements
TA-9-2024-0357 · P9_TA(2024)0357 · PE757.977
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Parliament's amended version of the proposed regulation amends the EU benchmarks regulation to focus rules on critical and significant benchmarks, EU Climate Transition and Paris-aligned Benchmarks, and certain commodity benchmarks, reducing burdens on smaller benchmarks.¶¶ It sets a EUR 50 billion threshold for significant benchmarks, requires administrators to notify ESMA or national authorities when exceeded, and allows designation of significant benchmarks by authorities or ESMA under certain conditions.¶¶¶ It requires administrators of significant benchmarks to seek authorisation, registration, recognition or endorsement within 60 working days, and prohibits use of benchmarks under public notices unless allowed temporarily.¶¶¶ It mandates that supervised entities replace or disclose alternatives for benchmarks subject to public notices within 6 months, and restricts use of ESG-claiming benchmarks lacking required disclosures.¶¶ It makes recognition a permanent access route for third-country administrators, requires a legal representative in the EU, and sets transitional provisions for existing administrators.¶¶¶
Key points
- Titles II, III (except Articles 23a-23c), IV and VI apply only to critical benchmarks, significant benchmarks, EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks; commodity benchmarks under Annex II remain covered.¶
- Administrators not in the ESMA register cannot provide or endorse EU Climate Transition or Paris-aligned Benchmarks, or suggest compliance; names must include 'EU CTB' or 'EU PAB'.¶¶
- A benchmark is significant if used as reference in financial instruments, contracts, or investment funds with total average value of at least EUR 50 billion, or if designated as significant.¶¶
- Administrators must notify ESMA and national authorities when a benchmark exceeds the EUR 50 billion threshold; authorities may issue a notice if administrator fails to notify, after giving opportunity to be heard.¶¶
- Competent authorities may designate a benchmark as significant if it has no substitutes and its cessation would have significant adverse impacts; ESMA must be consulted and can settle disagreements.¶¶¶
- ESMA may designate a third-country benchmark as significant upon request or on its own initiative under similar conditions.¶
- Administrators of significant benchmarks must seek authorisation, registration, recognition or endorsement within 60 working days; failure leads to public notice prohibiting use.¶¶¶
- Supervised entities cannot add new references to benchmarks under public notice, or to critical, commodity, EU CTB or EU PAB benchmarks whose administrators are not in the register; temporary use allowed under conditions.¶¶
- Users of benchmarks under public notice must replace them within 6 months or publish a statement explaining why not; ESG-claiming benchmarks require disclosure of specified information.¶¶
- Recognition for third-country administrators becomes permanent; they must have a legal representative in the EU and comply with the regulation, with some exceptions.¶¶¶
- ESMA must develop regulatory technical standards for calculating the threshold and other criteria, and the Commission must report on the threshold's adequacy by two years after entry into force.¶¶
- Existing administrators retain status for nine months after application; those designated within that period need not re-apply.¶
Who is affected
- Administrators of benchmarks in the EU and third countries: must comply with new scope, notification, and authorisation requirements.¶¶¶
- Supervised entities using benchmarks: prohibited from adding new references to certain benchmarks and must replace or disclose alternatives.¶¶
- Competent authorities and ESMA: responsible for designating significant benchmarks, issuing public notices, and supervising compliance.¶¶¶
- Issuers of prospectuses referencing certain benchmarks: must include information about public notices in prospectuses.¶
Figures and deadlines
- EUR 50 billion threshold for significant benchmarks based on total average value of financial instruments, contracts, or investment funds.¶
- 60 working days for administrators to seek authorisation, registration, recognition or endorsement after notification or designation.¶¶¶
- 6 months to replace benchmarks under public notice or publish explanation.¶
- 9 months for existing administrators to retain status and for designations to be made.¶
- 1 January 2026: date of application of the regulation.¶
Legal basis: Article 114 of the Treaty on the Functioning of the European Union¶