Where: Brussels, Belgium
Topic: Economy, finance, tax and competition
Organiser: European Commission
On 18 September, the European Commission will adopt a draft regulation on benchmarks. The Commission’s aim is to address the issues raised by the alleged manipulation of LIBOR and EURIBOR, and of other benchmarks for commodities and exchange rates. The proposal will set out new rules for the production and use of benchmarks referenced in financial instruments and financial contracts, in order to ensure their integrity by guaranteeing that they are not subject to conflicts of interest, reflect the economic reality that they are intended to measure and are used appropriately.
Benchmarks affect the value of trillionsof euro worth of financial instruments globally, and millions of residential mortgages use benchmarks for reference. They determine the amounts of money to be paid out under financial contracts, affect the value of assets held by investors, and are used to assess the performance of investment managers. Doubts about the accuracy and integrity of benchmarks can undermine market confidence, cause significant losses to consumers and investors, and distort the real economy.
The new Market Abuse Regulation (see MEMO/13/595) will ensure that those who manipulate or try to manipulate benchmarks can be punished. This will have a deterrent effect, but deterrence is not enough. Benchmarks need to be calculated and supervised in an appropriate way.
Press conference by Commissioner Barnier preceded by a technical briefing (details to be announced).
Press release and MEMOs will be available on the day.