COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT pursuant to Article 294(6) of the Treaty on the Functioning of the European Union concerning the position of the Council on the adoption of a regulation of the European Parliament and of the Council amending Regulation (EU) 2016/1011 as regards the scope of the rules for benchmarks, the use in the Union of benchmarks provided by an administrator located in a third country, and certain reporting requirements
Date: 2025-03-28
Institutions: Directorate-General for Financial Stability, Financial Services and Capital Markets Union, European Commission
Subjects: Euribor, European Securities and Markets Authority, consumer protection, disclosure of information, domestic market, exchange of information, financial control, financial legislation, financial market, price index

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   EUROPEAN COMMISSION  Brussels, 28.3.2025  COM(2025) 155 final 2023/0379 (COD)  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT  pursuant to Article 294(6) of the Treaty on the Functioning of the European Union  concerning the position of the Council on the adoption of a regulation of the European Parliament and of the Council amending Regulation (EU) 2016/1011 as regards the scope of the rules for benchmarks, the use in the Union of benchmarks provided by an administrator located in a third country, and certain reporting requirements  
 
2023/0379 (COD) 

COMMUNICATION FROM THE COMMISSION 
TO THE EUROPEAN PARLIAMENT 

pursuant to Article 294(6) of the Treaty on the Functioning of the European Union 

concerning the 

position of the Council on the adoption of a regulation of the European Parliament and 
of the Council amending Regulation (EU) 2016/1011 as regards the scope of the rules for 
benchmarks, the use in the Union of benchmarks provided by an administrator located 
in a third country, and certain reporting requirements 

1. 

BACKGROUND 

Date of transmission of the proposal to the European Parliament and 
to the Council 
(document COM(2023) 660 final – 2023/0379 COD): 

17 October 2023 

Date  of  the  opinion  of  the  European  Economic  and  Social 
Committee: 

14 February 2024 

Date of the position of the European Parliament, first reading: 

22 April 2024 

Date of transmission of the amended proposal: 

N/A 

Date of adoption of the position of the Council: 

24 March 2025 

2. 

OBJECTIVE OF THE PROPOSAL FROM THE COMMISSION 

The Commission proposal pursues two objectives: (i) to reduce regulatory and administrative 
burden on EU businesses and investors by focusing the scope of Regulation (EU) 2016/1011 
on those benchmarks with the greatest economic impact; and (ii) to ensure that EU benchmark 
users  continue  to  have  access  to  the  broadest  possible  set  of  benchmarks,  including  third-
country benchmarks. 

3. 

COMMENTS ON THE POSITION OF THE COUNCIL 

The  position  of  the Council  as  adopted  at  first  reading  fully  reflects  the  political  agreement 
reached  between  the  European  Parliament  and  the  Council  on  12 December 2024.  The 
Commission supports this agreement, the main points of which are set out below. 

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Significant  benchmarks:  The  co-legislators  have  agreed  to  introduce  certain 
modifications  related  to  significant  benchmarks  relative  to  the  Commission’s 
proposal.    In  addition  to  the  EUR  50  billion  threshold,  qualitative  criteria  were 
introduced to identify significant benchmarks. The calculation of the EUR 50 billion 
threshold  now  considers  the  range  of  maturities  or  tenors,  currencies  and  return 
calculation  variants.  These  additions  aim  to  provide  a  more  comprehensive 
evaluation of a benchmark’s significance by considering its diverse applications and 
the  potential  impact  of  its  cessation  or  unreliability.  The  draft  agreement  also 

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introduces an empowerment for the Commission to adopt a delegated act to specify 
the methodology for calculating the EUR 50 billion threshold and to set clear criteria 
for assessing benchmark usage. Additionally, the Commission is required to review 
the  adequacy  of  this  threshold  within  three  years  and  report  its  findings  to  the 
European Parliament and the Council. 

Use  of  benchmarks:  The  Council’s  position  at  first  reading  introduces  a  specific 
mechanism allowing the continued use of a benchmark following the publication of a 
public  notice  that  would  normally  prohibit  its  use.  The  European  Securities  and 
Markets Authority (ESMA) or the competent authority may allow the use of such a 
benchmark for 6 to 24 months after the publication of the public notice. This change 
is  designed  to  prevent  serious  market  disruptions  by  ensuring  a  gradual  transition. 
The  assessment  by  ESMA  or  the  competent  authority  on  a  possible  extension  is 
based  on  specific  criteria  introduced  in  the  amending  regulation,  ensuring  that  any 
extension is justified and limited to cases where it is truly necessary. 

Commodity benchmarks: The co-legislators have agreed to introduce changes to the 
regulatory  treatment  of  commodity  benchmarks  to  better  reflect  their  specific 
characteristics and ensure proportionate regulatory burden. Commodity benchmarks 
based  on  contributions  from  non-supervised  entities  will  be  subject  to  the  rules  of 
Regulation  (EU) 2016/1011  as soon as the total average notional  value of financial 
instruments  referencing  the  benchmark  exceeds  EUR 200 million  over  12  months. 
However, commodity benchmarks based on regulated data or supervised contributors 
remain  subject  to  the  EUR   50 billion  threshold  under  the  general  financial 
benchmark rules. 

Spot  foreign  exchange  benchmarks:  The  Council’s  position  at  first  reading 
introduces  certain  changes  regarding  the  exemption  for  spot  foreign  exchange 
benchmarks. The co-legislators agreed to maintain this exemption which was deleted 
by the Commission’s proposal to ensure that benchmark users in the EU have access 
to  hedging  instruments  where  currency  controls  apply.  The  Commission  is  now 
empowered  to  designate  through  implementing  acts  certain  foreign  exchange 
benchmarks as exempted, ensuring flexibility as currency controls change over time. 

Voluntary opt-in regime: The co-legislators have agreed to allow administrators that 
would be excluded from the scope of the Regulation to voluntarily choose to apply 
the rules (‘opt-in’) under certain conditions. A competent authority may designate a 
benchmark  as  significant  if:  (i)  the  administrator  submits  a  written  request  clearly 
stating  the  reasons  for  the  request  for  designation;  and  (ii)  the  benchmark  is  used 
within  a  combination  of  benchmarks  in  the  EU  as  a  reference  for  financial 
instruments, financial contracts or investment funds with a total average value of at 
least  EUR 20 billion.  This  ensures  that  administrators  who  wish  to  retain  their 
regulated  status  and  to  provide  benchmarks  within  a  supervised  framework  can  do 
so, if they fulfil the criteria of the opt-in. 

Benchmarks related to environmental, social and governance (ESG) claims: The co-
legislators have agreed to introduce a requirement for administrators of EU Climate 
Transition  Benchmarks  and  EU  Paris-aligned  Benchmarks  to  be  registered, 
authorised,  recognised  or  endorsed,  ensuring  regulatory  oversight  and  preventing 
misleading  ESG  claims.  The  draft  agreement  also  includes  a  requirement  for 
administrators that are subject to supervision under Regulation (EU) 2016/1011 for at 
least one of their benchmarks to disclose ESG information for all their benchmarks 
that  pursue  ESG  objectives.  The  co-legislators  also  included  a  requirement  for  the 

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Commission  to  assess,  by  30 June 2029,  the  appropriateness  of  current  ESG 
disclosure  requirements  and  their  alignment  with  other  sustainability-related 
regulations.  This  forward-looking  approach  ensures  that  ESG  disclosures  remain 
relevant and effective.  

Supervision of third-country benchmark administrators in the EU: The co-legislators 
have  agreed  to  extend  ESMA’s  supervisory  powers  over  third-country  benchmark 
administrators  active  in  the  EU.  Third-country  benchmark  administrators  accessing 
the EU market via the recognition regime are already supervised by ESMA. Aligning 
ESMA’s oversight across both recognition and endorsement regimes ensures a level 
playing  field  for  all  third-country  benchmarks  used  in  the  EU.  Additionally,  it 
establishes  ESMA  as  their  sole  supervisor,  improving  cross-border  cooperation, 
regulatory  efficiency  and  simplification.  New  tasks  entrusted  to  ESMA  for  the 
supervision  of  endorsing  entities  would  not  lead  to  a  need  for  more  staff  and 
financial  resources  for  ESMA  (i.e.  these  new  tasks  ought  to  be  compensated  by  a 
reduction in the existing tasks and fees paid by the newly supervised entities). 

4. 

CONCLUSION 

The  Commission  supports  the  results  of  the  interinstitutional  negotiations  and  can  therefore 
accept the Council’s position at first reading. 

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