Focus - Proposed Regulation on Benchmarks

Date 31 okt. 2013
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In this newsletter, we focus on the European Commission’s proposal (click link) for a regulation on indices used as benchmarks in financial instruments and financial contracts (in the following, the “Regulation on Benchmarks”) which was introduced 18 September 2013. In the light of the cases regarding the manipulation of the two most significant benchmarks in EU, EURIBOR and LIBOR, there has been a strong political wish to establish supervision of the benchmark interest rates both in EU and Denmark. As recently as in the beginning of 2013, Denmark added rules to the Danish Financial Business Act for the purpose of avoiding manipulation of benchmarks. However, the Regulation on Benchmarks has a wider scope than the Danish rules, as the proposed regulation contains rules which currently not are a part of Danish legislation. The Regulation on Benchmarks is expected to enter into force in 2015.

 

In this newsletter, we provide an overview of the contents of the Regulation on Benchmarks as well as the effects it is expected to have.

 

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