The European Benchmarks Regulation (Regulation No (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds) (the EBR) is a new European regulation that took effect on 1 January 2018.
The EBR is designed to introduce a common framework and consistent approach to the regulation of benchmarks (as defined in the EBR) across the EU. Its key aims are to ensure that benchmarks are robust and reliable, and to minimise conflicts of interest in benchmark-setting processes. The EBR imposes certain requirements on index providers and benchmark administrators, and on contributors to and users of benchmarks.
The LME is currently relying on the transitional provision set out in article 51(1) of the EBR. To facilitate users’ compliance with their EBR obligations in the interim, the LME has published certain preliminary information on the indicative status of its prices under the EBR. This information will be updated, as required, in the light of the LME’s authorisation as a benchmark administrator, and also in the light of Brexit considerations.