A broad reach

Author: | Published: 11 Dec 2017

The entry into force of the EU’s Benchmarks Regulation on January 1 will have a major impact on markets, asset classes and transactions

Benchmark rates and indices matter. Financial benchmarks play a central role in market participants' contracts and pricing of transactions. These include transactions in or referencing interest rates, currencies, financial instruments and commodities used by professional market participants, through to financial products and transactions with retail clients as well as non-financial end-users in relation to a range of reference prices. The financial crisis has shown that failure of confidence in the accuracy and integrity of rates undermines market confidence. This in turn can cause losses to consumers, investors and the real economy. The EU's reforms aim to improve data quality and conduct of business standards and make benchmarks less susceptible to manipulation....