Corporate Advisory

New Benchmarks under the Regulatory and Supervisory regime

Following misconduct related to the London Inter-Bank Offered Rate (LIBOR) benchmark, the FCA were given powers to regulate benchmarks specified by the Government in April 2013. Currently, LIBOR is the only regulated benchmark.

The Government’s Fair and Effective Markets Review (terms of reference) has recommended an additional seven benchmarks that should be regulated by the FCA. The Treasury subsequently consulted on the legislative measures to specify further benchmarks to be regulated by the FCA and has published feedback from the consultation process.

The benchmarks that are being brought into the regulatory scope are:

  • Sterling Overnight Index Average (SONIA)
  • Repurchase Overnight Index Average (RONIA)
  • ISDAFIX
  • WM/Reuters (WMR) London 4pm Closing Spot Rate
  • London Gold Fixing (soon to be replaced by the LBMA Gold Price)
  • LBMA Silver Price
  • ICE Brent Index

The FCA anticipate regulation of these benchmarks will begin from April 2015. The full consultation paper can be found here