The integrity of benchmarks is crucial for pricing many financial instruments, including interest rate swaps, commercial and non-commercial contracts, loans, mortgages, and for risk management. Any risk of benchmark manipulation could undermine market confidence, cause significant investor losses, and distort the real economy.

To address this, the Benchmark Regulation (Regulation (EU) 2016/1011, or BMR) was introduced. Effective in 2018, it establishes requirements for administrators, contributors, and users of benchmarks, especially regarding governance, data quality, transparency, and oversight.

The regulation was a response to the LIBOR and EURIBOR manipulation scandals. It covers a broad range of benchmarks, including regulated-data benchmarks, interest rate and commodity benchmarks, and increasingly, ESG and climate-related benchmarks. In 2019, the Benchmark Regulation was reviewed to incorporate two new categories: EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks, along with sustainability-related disclosures for benchmarks. A further targeted review occurred in 2020 following the UK Financial Conduct Authority (FCA)'s 2017 announcement that the London Interbank Offered Rate (LIBOR) would be phased out by the end of 2021. The updated rules empower the European Commission to replace critical and other benchmarks with a statutory replacement benchmark if their discontinuation would significantly disrupt EU financial markets.

In 2023, the European Commission proposed a comprehensive reform of the Benchmark Regulation, politically agreed upon in December 2024 and finalized in May 2025. These new rules, effective January 1, 2026, aim to regulate only economically significant benchmarks, thereby reducing the scope and the administrative burden on smaller participants. The revised Benchmark Regulation is part of the EU's strategy to enhance competitiveness and streamline regulatory requirements. Going forward, the revised rules aim to keep only the most economically relevant benchmarks in scope, by introducing a minimum threshold of EUR 50 billion in financial instruments and financial contracts that reference a benchmark. Commodity benchmarks based on input data gathered through journalistic means also stay in scope, with a reduced threshold of EUR 200 million. EU climate benchmarks remain regulated regardless of volume due to their central role in the EU's sustainability strategy. Benchmarks not meeting these criteria will be excluded unless their administrators voluntarily opt in.

A key reform objective was ensuring continued access to third-country benchmarks. The transition period for their use has been extended to December 31, 2025. Following the end of the transition period, only benchmarks recognized, authorized, or registered by the European Securities and Markets Authority (ESMA) can be used. The reform also extends ESMA’s competences. ESMA will oversee the recognition of third-country benchmark administrators and serve as the single interlocutor for non‑EU benchmark providers that want to offer benchmarks to users in the EU.

Furthermore, the Commission can exempt certain frequently used individual spot foreign exchange benchmarks from regulation to avoid hindering market participants' hedging activities.

Combating greenwashing is another focus. Administrators listed in the ESMA register or belonging to a registered group must disclose ESG-related information for all benchmarks, regardless of classification. Supervised companies will only be allowed to use EU and third-country benchmarks that claim to take environmental, social and governance factors (ESG) into account in their methodology, if the administrator of the benchmarks discloses certain information.

In April 2025, ESMA published the results of a Common Supervisory Action (CSA) on ESG disclosures. The analysis revealed discrepancies in disclosure quality and consistency. ESMA recommended that the European Commission revise the Level 2 requirements for ESG disclosure to improve transparency and comparability while alleviating the administrative burden on administrators. The aim is to harmonize ESG disclosure requirements with other EU sustainability regulations and promote uniform supervisory practices across Member States.

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.

The integrity of benchmarks is crucial for pricing many financial instruments, including interest rate swaps, commercial and non-commercial contracts, loans, mortgages, and for risk management. Any risk of benchmark manipulation could undermine market confidence, cause significant investor losses, and distort the real economy.

To address this, the Benchmark Regulation (Regulation (EU) 2016/1011, or BMR) was introduced. Effective in 2018, it establishes requirements for administrators, contributors, and users of benchmarks, especially regarding governance, data quality, transparency, and oversight.

The regulation was a response to the LIBOR and EURIBOR manipulation scandals. It covers a broad range of benchmarks, including regulated-data benchmarks, interest rate and commodity benchmarks, and increasingly, ESG and climate-related benchmarks. In 2019, the Benchmark Regulation was reviewed to incorporate two new categories: EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks, along with sustainability-related disclosures for benchmarks. A further targeted review occurred in 2020 following the UK Financial Conduct Authority (FCA)'s 2017 announcement that the London Interbank Offered Rate (LIBOR) would be phased out by the end of 2021. The updated rules empower the European Commission to replace critical and other benchmarks with a statutory replacement benchmark if their discontinuation would significantly disrupt EU financial markets.

In 2023, the European Commission proposed a comprehensive reform of the Benchmark Regulation, politically agreed upon in December 2024 and finalized in May 2025. These new rules, effective January 1, 2026, aim to regulate only economically significant benchmarks, thereby reducing the scope and the administrative burden on smaller participants. The revised Benchmark Regulation is part of the EU's strategy to enhance competitiveness and streamline regulatory requirements. Going forward, the revised rules aim to keep only the most economically relevant benchmarks in scope, by introducing a minimum threshold of EUR 50 billion in financial instruments and financial contracts that reference a benchmark. Commodity benchmarks based on input data gathered through journalistic means also stay in scope, with a reduced threshold of EUR 200 million. EU climate benchmarks remain regulated regardless of volume due to their central role in the EU's sustainability strategy. Benchmarks not meeting these criteria will be excluded unless their administrators voluntarily opt in.

A key reform objective was ensuring continued access to third-country benchmarks. The transition period for their use has been extended to December 31, 2025. Following the end of the transition period, only benchmarks recognized, authorized, or registered by the European Securities and Markets Authority (ESMA) can be used. The reform also extends ESMA’s competences. ESMA will oversee the recognition of third-country benchmark administrators and serve as the single interlocutor for non‑EU benchmark providers that want to offer benchmarks to users in the EU.

Furthermore, the Commission can exempt certain frequently used individual spot foreign exchange benchmarks from regulation to avoid hindering market participants' hedging activities.

Combating greenwashing is another focus. Administrators listed in the ESMA register or belonging to a registered group must disclose ESG-related information for all benchmarks, regardless of classification. Supervised companies will only be allowed to use EU and third-country benchmarks that claim to take environmental, social and governance factors (ESG) into account in their methodology, if the administrator of the benchmarks discloses certain information.

In April 2025, ESMA published the results of a Common Supervisory Action (CSA) on ESG disclosures. The analysis revealed discrepancies in disclosure quality and consistency. ESMA recommended that the European Commission revise the Level 2 requirements for ESG disclosure to improve transparency and comparability while alleviating the administrative burden on administrators. The aim is to harmonize ESG disclosure requirements with other EU sustainability regulations and promote uniform supervisory practices across Member States.

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.