|Author (Corporate)||European Commission: DG Financial Stability Financial Services and Capital Markets Union|
|Series Title||Official Journal of the European Union|
|Series Details||L 49, Pages 6-17|
|Content Type||Blog, Legislation, News, Policy-making|
Regulation (EU) 2021/168 - formally signed by the co-legislators on 10 February 202 - introducing a number of amendments to Regulation (EU) 2016/1011 on common standards to prevent manipulation of benchmarks, and also to Regulation (EU) No 648/2012. This is a text with EEA relevance.
Regulation (EU) 2016/1011 sets common standards for the European Union (EU) aimed at preventing manipulation of benchmarks that could affect the price of financial instruments, or financial contracts such as loans and mortgages. Benchmarks are indices used to price financial instruments and contracts or to measure the performance of an investment fund. Regulation (EU) No 648/2012 lays down rules regarding over-the counter (OTC) derivative contracts, central counterparties (CCPs) and trade repositories.
The proposal for this Regulation was put forward to ensure that when a widely used benchmark is phased out, it does not cause disruptions to the economy and harm financial stability in the EU. The cessation of widely used benchmark became a realistic prospect, as the United Kingdom's Financial Conduct Authority - which supervises the London Interbank Offered Rate (LIBOR) - announced that it would stop supporting this benchmark at the end of 2021 and expected its cessation shortly thereafter.
The legislative initiative was tabled by the European Commission on 24 July 2020. The Council of the European Union adopted its general approach concerning this initiative on 7 October 2020. The plenary session of the European Parliament endorsed a negotiating position on 25 November. An informal agreement between the co-legislators on this initiative was reached on 30 November. This was endorsed by the Parliament on 19 January 2021, followed by the Council on 2 February. The Act was signed by the co-legislators on 10 February 2021 and published in the Official Journal on 12 February 2021.
|Subject Categories||Economic and Financial Affairs|
|Subject Tags||Financial Services|
|International Organisations||European Union [EU]|