Markets integrity: Benchmarks and market abuse

Policy making timeline

1. 1 February 2024

   Legislation - Capital markets union

   Political agreement between the European Parliament and the Council on the listing act, part of the clearing, insolvency and listing package.

2. 17 October 2023

   Legislative proposal - Benchmarks

   2024 Commission work programme: Proposal for a Regulation amending the Benchmarks Regulation.

3. 14 July 2023

   Delegated act - Benchmarks

   • Adoption of Commission Delegated Regulation (EU) extending the transitional period laid down for third-country benchmarks in Article 51(5) of Regulation (EU) 2016/1011 of the European Parliament and the Council (not in force until it is published in the Official Journal)
     
      
   • Report from the Commission on the scope of Regulation (EU) 2016/1011, in particular with respect to the continued use by supervised entities of third-country benchmarks and on potential shortcomings of the current framework
4. 7 December 2022

   Legislative package - Capital markets union

   Clearing, insolvency and listing package

5. 18 October 2022

   Legislative proposal

   As highlighted in the 2022 State of the Union address the gas market has changed dramatically: from mainly pipeline gas to increasing amounts of liquefied natural gas (LNG). But the benchmark used in the gas market – the title transfer facility (TTF) – has not been adapted to reflect this. In this context, the Commission has proposed to the Council to adopt under Article 122 of the TFEU an empowerment to ACER to publish daily an LNG price assessment and as of March 2023 an LNG benchmark.

6. 20 May 2022

   Consultation - Benchmarks

   Targeted consultation on the regime applicable to the use of benchmarks administered in a third country

   End date: 12 August 2022

7. 24 June 2021

   Joint public statement - LIBOR

   Joint public statement on the forthcoming cessation of all LIBOR settings

8. 30 November 2020

   Legislation - Benchmarks

   Agreement by the European Parliament and the Council on the Commission's proposal to amend EU rules on financial benchmarks

9. 24 July 2020

   Legislative proposal - Benchmarks

   Legislative proposal to amend EU rules on financial benchmarks

10. 11 October 2019

    Consultation - Benchmarks

    Public consultation on the review of the EU Benchmarks Regulation

    End date: 31 December 2019

11. 29 November 2017

    Call for expressions

    Call for expressions of interest to participate in the working group on euro risk-free rates

12. June 2016

    Legislation - Benchmarks

    To complement sanctioning regime provided by the new MAD and MAR, in 2016 the EU adopted a specific Benchmarks Regulation. The regulation establishes a common set of rules governing the production and use of benchmarks across different Member States. In particular, the new rules

    • ensure that benchmark administrators are subject to prior authorisation and on-going supervision depending on the type of benchmark (e.g. commodity or interest-rate benchmarks)
    • improve their governance (e.g. management of conflicts of interest) and require greater transparency of how a benchmark is produced
    • ensuring the appropriate supervision of critical benchmarks, such as Euribor/Libor, the failure of which might create risks for many market participants and even for the functioning and integrity of financial markets
13. April 2014

    Legislation - Market abuse

    As part of its work to make financial markets sounder and more transparent, in June 2014 the EU enacted new rules to combat market abuse. The new rules strengthened and replaced the original market abuse directive (MAD). Adopted in 2003, the MAD introduced a framework to harmonise the core concepts and rules on market abuse and strengthen cooperation between regulators. However, these rules were eventually overtaken by the growth of new trading platforms, over-the-counter trading and new technology such as high frequency trading. This is why the Commission proposed to replace the MAD with a regulation and a new directive on market abuse.

    Market Abuse Regulation

    The Market Abuse Regulation (MAR) broadens the scope of instruments covered by the market abuse framework, strengthening in particular the regime for commodity and related derivative markets. It explicitly bans the manipulation of benchmarks (such as LIBOR) and reinforces the investigative and sanctioning powers of regulators. It also ensures a single rulebook, while reducing administrative burdens on smaller and medium-sized issuers where possible.

    Market Abuse Directive

    The new Market Abuse Directive (new MAD) complements the MAR by requiring Member States to introduce common definitions of criminal offences of insider dealing and market manipulation, and to impose maximum criminal penalties for the most serious market abuse offences. Member States have to make sure that such behaviour, including the manipulation of benchmarks, is a criminal offence, punishable with effective sanctions everywhere in Europe.

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15. March 2008

    Legislation - Market abuse

    Adoption of a Directive amending the Market Abuse Directive