Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) 2016/1011 as regards the exemption of certain third country foreign exchange benchmarks and the designation of replacement benchmarks for certain benchmarks in cessation
1. Proposal to amend the European Union Benchmarks Regulation (Regulation 2016/1011) (EU BMR) to provide for the orderly cessation of financial benchmarks, and to exempt certain foreign exchange benchmarks from regulatory requirements for third country benchmarks under the EU BMR.
2. The EU BMR came into force in 2016, providing a regulatory framework for the operation of financial benchmarks. Financial benchmarks are indices used to determine the amount payable under financial instruments or contracts, to determine the value of a financial instrument or to measure the performance of an investment fund. By setting out requirements relating to the calculation, transparency and governance of benchmarks, the EU BMR aims to increase the confidence of market participants in indices used as benchmarks in financial instruments and contracts.