The European Council adopted a regulation amending the EU framework for financial benchmarks to reduce administrative burden for EU companies, particularly small and medium-sized enterprises, by narrowing regulation to benchmarks considered critical or significant. Under the revised regime, administrators of non-significant benchmarks are removed from the scope of the legislation, although administrators outside scope can request voluntary application of the rules under certain conditions. The package extends the competence of the European Securities and Markets Authority (ESMA), requires administrators of EU Climate Transition Benchmarks and EU Paris-Aligned Benchmarks to be registered, authorised, recognised, or endorsed to support regulatory oversight and prevent misleading ESG claims, and introduces a specific exemption regime for spot foreign exchange benchmarks. The amendments also adjust the rules on using benchmarks provided by third-country administrators and certain reporting requirements. The regulation now requires adoption by the European Parliament at second reading before it can be published in the Official Journal and enter into force. The application date is 1 January 2026.
European Council 2025-03-24
European Council adopts revised EU benchmarks rules narrowing scope to critical and significant benchmarks
The European Council adopted a regulation amending the EU framework for financial benchmarks, focusing on critical or significant benchmarks to reduce administrative burdens for EU companies. The revised regime excludes non-significant benchmark administrators but allows voluntary rule application under certain conditions. It extends ESMA's competence, mandates registration for EU Climate Transition and Paris-Aligned Benchmarks, and introduces exemptions for spot foreign exchange benchmarks.