BMR
Benchmark Regulation
EU regulation governing the provision and use of financial benchmarks to ensure their integrity and reliability.
BMR establishes requirements for benchmark administrators, contributors, and users to ensure benchmark integrity following manipulation scandals like LIBOR. The regulation requires benchmark administrators to obtain authorization or registration and implement robust governance and control frameworks. BMR includes detailed requirements for benchmark methodology, data inputs, and oversight functions. Critical benchmarks like EURIBOR face enhanced requirements including mandatory contribution and regulatory oversight. The regulation restricts use of third-country benchmarks unless they meet equivalence requirements or are recognized under transitional arrangements. BMR aims to restore confidence in benchmarks that serve as reference rates for financial instruments worth trillions of euros.
Example
EURIBOR methodology requirements, LIBOR transition arrangements, administrator authorization