|Author (Corporate)||European Commission: DG Financial Stability Financial Services and Capital Markets Union|
|Series Details||COM (2020) 337|
Legislative initiative tabled by the European Commission on 24 July 2020, introducing a number of amendments to Regulation (EU) 2016/1011 on common standards to prevent manipulation of benchmarks.
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.
The proposal aims 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 Auhority - 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 Council of the European Union adopted its general approach concerning this initiative on 7 October 2020.
|Subject Categories||Economic and Financial Affairs|
|Subject Tags||Financial Services|
|International Organisations||European Union [EU]|