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Benchmark Regulation

Benchmark Regulation

A benchmark is a reference value against which the performance of financial instruments may be measured. Benchmarks may be based on an index covering financial instruments of the same class, e.g. stocks or bonds. They can also be calculated for a specific industry, a type of company or as a reference value for the broader economy.

The integrity of benchmarks is critical to the pricing of many financial instruments, such as interest rate swaps, commercial and non-commercial contracts, loans and mortgages and risk management. Any risk of manipulation of benchmarks may undermine market confidence, cause significant losses to investors and distort the real economy. This is what the Regulation on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds (Benchmark Regulation) addresses.

Objective

EU regulation is necessary as it improves the functioning and governance of benchmarks and ensures that benchmarks which are defined and used in the EU are robust, reliable, representative and fit for purpose and that they are not subject to manipulation.

Time line

The Benchmark Regulation (Level 1) entered into force on 30 June 2016 and has been applied since 1 January 2018. The regulatory technical standards, implementing acts and delegated acts (Level 2) entered into force on 25 November 2018 and have been applied since 25 January 2019.

Benchmark Regulation: the highlighted parts of the value chain are affected

Benchmarks Regulation & Structural Changes to Deutsche Börse Group’s Index business

Marketdata trading

Learn more about EU Benchmark Regulation, the transfer of administration of Deutsche Börse AG’s indices and the implications of Axioma acquisition to Deutsche Börse Group’s Index business.

STOXX: indices that meet your needs

Indices

STOXX calculates more than 10,000 indices from blue-chip and benchmark to strategy and smart-beta indices. They are licensed to more than 500 companies, including the world’s largest financial products issuers, capital owners and asset managers.

Legal basis

Find the most recent legal text on this regulation here.