On September 18, the European Commission published a proposed Regulation on indices used as benchmarks in financial instruments and financial contracts, together with a number of related documents, including an impact assessment and a set of frequently asked questions.

The aim of the proposed Regulation is to ensure the integrity of and restore confidence in benchmarks.  In broad terms, the Commission intends to achieve this by ensuring that benchmarks are not subject to conflicts of interest, are used appropriately and reflect the actual market or economic reality they are intended to measure.

The proposed Regulation will now pass to the European Parliament and the Council of the EU for consideration under the ordinary legislative procedure.  Proposed Regulation.