28 April 2016

Commission welcomes European Parliament's backing for new rules to prevent manipulation of financial benchmarks

The adoption of the proposed Regulation on financial benchmarks was approved by a large majority in the plenary session and it follows a political agreement by the European Parliament and the Council in November 2015.

A benchmark is an index or indicator used to price financial instruments and financial contracts or to measure the performance of an investment fund. The new rules will improve the governance of such benchmarks produced and used in the EU in financial instruments such as bonds, shares and derivatives. The new rules will help to protect investors and consumers as benchmarks determine the value or performance of investments and the level of mortgage payments of millions of households in the EU.

Jonathan Hill, EU Commissioner responsible for Financial Stability, Financial Services and Capital Markets Union said: "Benchmarks are vital for the functioning of our financial markets. Manipulating benchmarks is tantamount to stealing from investors and consumers. So I welcome today’s vote in the European Parliament, which means we now have new rules that will help rebuild confidence in financial markets in the European Union.”

The Regulation will enter into force following formal adoption by the Council, which is expected in May 2016 and publication in the official journal.

Full press release

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