Benchmarks Level 2 amending Regulation published in OJ

A Regulation amending the Implementing Regulation made under the Benchmarks Regulation has been published in the OJ.  The Benchmarks Regulation has been introduced to recognise that benchmarks play an important role in determining the price of many financial instruments and financial contracts and in assessing the performance of investment funds, and so they must accurately represent the relevant market or economic reality. The Benchmarks Regulation establishes different categories of benchmarks and provides for additional requirements ensuring the integrity and robustness of certain benchmarks considered as being critical. This includes the power of competent authorities to mandate (under certain conditions) contributions to or the administration of a critical benchmark. A benchmark is considered to be ‘critical’ where it is used directly or indirectly within a combination of benchmarks as a reference for financial instruments or financial contracts or for measuring the performance of investment funds, having a total value of at least EUR 500 billion. The Level 2 Regulation made under the Benchmarks Regulation set out a list of critical benchmarks. Data has now shown the value of instruments and contracts referencing the Euro Overnight Index Average (EONIA) exceeds the relevant threshold, so it has been added to the list.