European Benchmarks Regulation

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 BMR) is a new European regulation that took effect on 1 January 2018.

The BMR is designed to introduce a common framework and consistent approach to the regulation of benchmarks (as defined in the BMR) 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 BMR 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 of the BMR. The LME is assessing the impact of the BMR on the prices that the LME publishes, and on the LME’s Members and wider LME ecosystem. We will publish further information in due course in relation to the LME’s status under the BMR, and the status of the prices that it publishes.

We welcome engagement from all those with interest in our prices. Please direct any enquiries to benchmarks@lme.com.