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European Benchmark Regulation

Overview

The European Regulation on indexes used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds (the EU BMR) will apply from 1 January 2018.

The EU BMR introduces a common framework to ensure the accuracy and integrity of indexes used as benchmarks in the European Union.  The EU BMR applies to the:

  • provision of benchmarks
  • contribution of input data to a benchmark
  • use of a benchmark within the European Union


Under the EU BMR, only the following types of benchmarks may be used by supervised entities within the European Union:

  • Benchmarks that are provided by EU based administrators who have been granted authorisation or registration under the EU BMR and who are identified on the register to be maintained by the European Securities and Markets Association (ESMA)
  • Benchmarks that have been entered onto the ESMA register which are provided by third country administrators who have either:
    • satisfied the requirements for equivalence, or
    • acquired recognition under the EU BMR, or
    • successfully sought endorsement from an EU authorised or registered administrator or other supervised entity for specific benchmarks.

FTSE International Limited will apply to the United Kingdom Financial Conduct Authority for authorisation as an EU based administrator of benchmarks in early 2018.  The application will cover all FTSE, Russell, FTSE TMX and MTS indexes known to be used as benchmarks in the European Union.  The fixed income indexes acquired from Citigoup Indices LLC in August 2017 will continue to be administered by that body, now renamed FTSE Fixed Income LLC, according to the third country transitional provisions afforded by the regulation until such time as the administration of those indexes has been assumed by FTSE International Limited.


Supporting clients

FTSE Russell fully supports the focus of the EU BMR and has been deeply involved in contributing to the formation of the EU BMR and is committed to ensuring compliance of its relevant benchmarks with the EU BMR.

Over the coming months we will continue to engage with our clients to support them through the change, and provide them with further information on the implications of the regulation to benchmark users. 

We will post further information on this page as it becomes available.  In the meantime, if you have any specific questions, please let us know using the form on the right.