Presidency of the Council of the EU published its latest compromise proposal on the proposed Regulation on indices used as benchmarks in financial instruments and financial contracts on 8th December.

There are many interesting additions, too many to summarise, but to whet your appetite consider these:

  • The text foresees that some benchmarks may not continue once the regulation comes into force and thus some long term contracts will require transitional provisions to survive.
  • ‘Transparency of methodology’ does not mean that the formula must be published
  • The term ‘critical benchmarks’ should be defined according to the value of the financial instruments and funds referencing the benchmark across all indices (think about the reporting implications!).

It will be discussed at a meeting on 12 December 2014. Find it here.