CSSF's Reminder On Indices Used As Benchmarks

On 30 October 2017, the CSSF published a press release in relation to Regulation (EU) 2016/1011 on indices used as benchmarks (Benchmarks Regulation or Regulation or BMR) [see previous article for more details]. The CSSF recalls that the Benchmarks Regulation will be applicable as from 1 January 2018.

The Regulation aims at 3 types of actors of the market, including:

Benchmark administrators; Contributors providing input data in order to establish benchmarks; and Supervised entities using the benchmarks as part of financial instruments or financial contracts, or to measure the performance of investment funds. Supervised entities

The CSSF would like to particularly draw the attention of supervised entities to the use of benchmarks. According to article 29 of the Regulation, a supervised entity may use a benchmark or a combination of benchmarks in the Union if the benchmark is provided by an administrator located in the Union and included in the register referred to in article 36 or is a benchmark which is included in the register referred to in article 36.

In addition, according to paragraph 2 of article 29 of the BMR, when a prospectus to be published under Directive 2003/71/CE or Directive 2009/65/EC covers transferable securities or other investment products that reference a benchmark, the issuer, offeror, or person asking for admission to trade on a regulated market shall ensure that...

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