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A benchmark is a statistical measure, calculated from a representative set of data, that is used as a reference price for a financial instrument, financial contract, or to measure a performance.
As prices of financial instruments depend on benchmarks, MEPs decided that the new rules should apply to critical benchmarks, significant benchmarks, EU Climate Transition Benchmarks (EU CTB), EU Paris-aligned Benchmarks (EU PAB) and certain commodity benchmarks, in order to prevent green washing and assure adequate supervision. They also decided that the current threshold of a total average value of at least 50 billion euro to define a significant benchmark should be retained. Other benchmarks would be subject to a voluntary supervision regime.
To have a harmonised assessment, MEPs want ESMA to develop technical standards specifying the calculation method including potential data sources to classify a benchmark as significant. Furthermore, administrators of benchmarks used in the EU should attempt to obtain a globally agreed identifier code to identify their benchmarks.
MEPs also believe that ESMA should have a supervisory role in case of critical, significant, cross-border, third country, as well as EU CTB and EU PAB benchmarks.
Finally, the committee agreed that previously supervised benchmark administrators would keep their existing registration, authorisation, recognition or endorsement for nine months after entry into force of the new rules and should not be obliged to re-apply if they voluntarily opt-in to this amending Regulation within nine months. Administrators of significant benchmarks should not be obliged to re-apply and should retain their previous status.