The UK is taking measures to extend the transitional period for third-country benchmarks under the UK Benchmarks Regulation. HM Treasury, the government’s economic and finance ministry, has published a policy paper and subsequent draft legislation for this purpose.
According to the policy paper and draft legislation, the transitional period is to be extended from the end of 2025 to the end of 2030. This information is crucial for legal professionals as it encompasses international standards for financial businesses and can impact the decision-making process of corporate legal departments and law firms alike.
Third-country benchmarks are standards of minimum quality that benchmarks originating from third countries must fulfill to be used in the UK. The Benchmarks Regulation (BMR) intends to improve the preciseness and integrity of benchmarks that are used in financial markets.
The transitional period is the timeframe granted to third country benchmark administers to adjust to new requirements under the BMR. The UK’s decision to extend this period holds significance. This action will provide more time for benchmark administrators to adhere to the new standards, ensuring an even playing field in the international business landscape.
Legal professionals working in finance and international law should keep a close eye on these unfolding legislative actions and their potential implications on their firm’s operations and clients.
For more in-depth information about the UK’s decision to extend the transitional period for third-country benchmarks, please refer to the article released by Shearman & Sterling LLP.