EU Commission Moves to Establish List of Critical Benchmarks

The European Commission adopted an implementing regulation establishing a list of critical benchmark indexes that “are of particular importance for financial markets and consumer contracts,” the European Union executive said.

The decision enables supervisors to make use of certain provisions of the Benchmarks Regulation in advance of its entry into application in 2018, the commission said in a statement on Friday. The euro interbank offered rate, or Euribor, is the first to be included in the list established by the implementing regulation, which was adopted on Thursday, it said. 

The commission will review and update this list regularly and “will include, in due course, other benchmarks that fulfill certain criteria,” according to the statement.

“This Implementing Regulation will ensure that supervisors are in a position to allow the continuation of ‘critical’ benchmarks where their cessation would have a severe adverse impact on market participants and undermine the functioning and integrity of markets. In particular, classifying EURIBOR as a ‘critical’ benchmark will facilitate supervisors in requesting data contributions from banks, if they deem it necessary to ensure the benchmark’s representativeness,” the commission said.

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