This Policy Statement sets out our framework for regulating and supervising the seven additional benchmarks being brought into regulatory scope.
Why are we publishing this paper?
In CP14/32 we outlined our proposals for regulating and supervising the seven additional benchmarks coming into regulatory scope. This followed recommendations by the Fair and Effective Markets Review and the Treasury's subsequent consultation on the recommendations.
The benchmarks being brought into scope are:
- Sterling Overnight Index Average (SONIA)
- Repurchase Overnight Index Average (RONIA)
- ISDAFIX (soon to be renamed the ICE Swap Rate)
- WM/Reuters (WMR) London 4pm Closing Spot Rate
- London Gold Fixing (soon to be replaced by the LBMA Gold Price)
- LBMA Silver Price
- ICE Brent Index
Currently, the London Inter-bank Offered Rate (LIBOR) is the only benchmark we regulate.
This Policy Statement summarises the responses we received to our consultation, provides our response to the feedback and publishes the final rules.
Who does this Policy Statement affect?
The rules set out in the Policy Statement affect the administrators of the additional benchmarks and, where the benchmark has regulated submitters, firms that submit to them. They also affect the administrator of, and submitters to, LIBOR.
These changes will be of interest to firms that use these benchmarks as part of their ongoing business, including electronic trading platforms and similar entities. These changes may interest other financial institutions with a significant profile in global markets referencing benchmarks. And they may also be of indirect interest to consumers.
What are the next steps?
The Handbook provisions come into force on 1 April 2015.
Find out more:
- Read our Handbook
- CP14/32: Bringing additional benchmarks into the regulatory and supervisory regime
- Fair and Effective Markets Review (Bank of England)
- Fair and Effective Markets Review’s benchmarks to bring into UK regulatory scope (HM Treasury)