New rules for financial benchmarks: more transparency and control

In brief

The European Parliament adopted on 6 May 2025 an amendment to the regulation on benchmarks. These indices are used in financial contracts, such as interest rates or stock market indices. The revision aims to clarify which indices are concerned, to better regulate those coming from non-EU countries and to ease certain reporting obligations.

Context

The initial regulation (EU) 2016/1011, known as the BMR (Benchmark Regulation), was put in place after rate manipulation scandals such as Libor. It imposes strict rules on benchmark administrators to ensure their reliability. However, its scope was too broad, covering even little-used or non-critical indices. Moreover, indices from third countries (outside the EU) had to be recognised or approved, creating administrative burdens. The European Commission proposed a revision in 2023 to simplify and adapt the rules.

What was decided

Parliament approved the Council's position, which amends the 2016 regulation. The main changes are:

• Reduced scope: only 'critical' benchmarks (such as Euribor) and 'significant' ones (widely used) remain fully regulated. 'Non-significant' benchmarks are exempt from most obligations.
• Third-country benchmarks: administrators located outside the EU can now have their indices used in the EU without prior approval, provided they are equivalent to international standards and the Commission has recognised them.
• Eased reporting obligations: reporting requirements for small administrators are simplified.
• Transition period: the new rules apply gradually to give stakeholders time to adapt.

The adopted text is the result of an agreement between Parliament and the Council (ordinary legislative procedure). The rapporteur was Jonás Fernández (S&D, Spain).

Vote result

The vote took place on 6 May 2025. Parliament approved the Council's position without amendment, by a show of hands (no individual count). The decision is therefore adopted.

What this means for citizens

For individuals, these changes are mostly indirect. Benchmarks are used to calculate mortgage interest rates, pension fund returns or savings product performance. By simplifying rules for non-critical benchmarks, compliance costs for banks and asset managers decrease, which can translate into lower fees for consumers. On the other hand, critical benchmarks remain strictly regulated to prevent manipulation. The opening to third-country indices allows greater investment diversity, but with equivalence guarantees. In summary, the revision aims to balance investor protection and the competitiveness of the European financial market.