Following LIBOR (London Interbank Offered Rate) and EURIBOR (Euro Interbank Offered Rate) scandals, the European Commission adopted a proposal for a Regulation on benchmarks on 18 September 2013 with the aim of improving the functioning and governance of benchmarks produced and used in the EU. Last Friday (13th February 2015), the Council gave its backing to the proposed rules.
“Manipulating benchmarks amounts to stealing from investors and consumers and undermines confidence in markets. I welcome the backing given by the Council today. The proposed regulation will ensure that we have benchmarks that are robust, reliable and representative,” said Lord Hill, EU Commissioner for Financial Stability, Financial Services and Capital Markets Union.
This backing means that the Council agreed on a negotiating mandate towards agreement with the European Parliament. Once the European Parliament has agreed its own position (a vote initially scheduled for early 2014 – read here and here), EU co-legislators will negotiate in order to find a final agreement on the text, which is expected by the summer.
“I hope we can make rapid progress on this proposal and that the European Parliament will agree its position as soon as possible,” added Hill.
Read more in the Council’s press release and/or the negotiating mandate itself.