The revision of the Benchmarks Regulation (BMR), which will come into force on 1 January 20261, brings major changes for asset management companies and other users of benchmarks in Europe.
1. End of the transition period and new access rules to non-EU indices
Until now, a transition period allowed European management companies to use benchmark indices published outside the EU, even if they did not comply with the requirements of the BMR. This flexibility will end in 2026. From now on, only references to non-EU indices that comply with the new rules2 will be permitted.
However, the reform introduces a threshold of €50 billion, limiting the application of the BMR to significant benchmarks of with a reference assets size above this threshold3. Many non-EU indices will no longer be affected by the Benchmark regulation, allowing asset management companies to continue to use them without restriction.
2. Risk of restrictions on certain significant non-EU indices
If a significant benchmark does not comply with the requirements of the BMR after 1 January 2026, ESMA or the national authorities may issue a public warning that it is not compliant. Once this warning has been published, asset management companies will no longer be able to reference new products to this index. This risk applies to indices labelled ‘Climate Transition’ and ‘Paris-Aligned’, which will have to be entered in the ESMA register to remain usable.
3. Non-EU suppliers back on the European market?
Under the old regulatory framework, some non-EU providers preferred to withdraw their indices from the European market rather than comply with the BMR, exposing management companies to the risk of losing their benchmark. With the reform, this risk is reduced as fewer indices will be subject to BMR.
4. Centralised supervision of non-EU indices
For non-EU indices remaining under the BMR, ESMA becomes the sole supervisor, simplifying access to foreign indices and reducing regulatory uncertainty for management companies.
Conclusion
With the end of the transition period, the revision of the BMR reduces barriers to access to non-EU indices, reduces the risk of certain indices disappearing and simplifies supervision. However, asset management companies will have to carefully monitor the compliance of significant benchmarks, or risk restrictions on their future use.
(1) .
- European Parliament and Council finalise review of the Benchmarks Regulation. ↩︎
- Proposal for a regulation: Scope of the rules for benchmarks ↩︎
- Benchmarks that play an important role in one or more national markets may be subject to BMR ↩︎