Benchmarks Extension of Transitional Period for benchmarks with non-UK administrators
The EU BMR is a regulatory framework which places requirements on administrators, supervised contributors and supervised users of benchmarks. These requirements relate to benchmark methodology, governance and transparency. Most of the EU BMR has directly applied in the UK since 1 January 2018.
	The UK made the necessary amendments under the EUWA to ensure the EU Regulation continued to operate effectively in the UK through the Benchmarks (Amendment and Transitional Provision) (EU Exit) Regulations 2019 (S.I. 2019/657). This legislation made amendments to the EU Regulation to address deficiencies and ensure that the existing regime could continue to operate effectively following the end of the Transition Period. The EU Regulation as amended and forming part of retained EU law is referred to as the BMR. The BMR took effect at the end of the Transition Period.
	Article 51(5) of the BMR stipulates that benchmarks provided by an administrator located in a third country may not be used in new financial instruments, financial contracts or to measure the performance of an investment fund by UK supervised entities after the expiration of an initial transitional period unless they are approved through equivalence, recognition or endorsement and listed on the UK Benchmarks Register.
	In September 2019, HM Treasury amended Article 51(5) to extend the transitional period for third country benchmarks from 31 December 2019 to 31 December 2022 through the Financial Services (Electronic Money, Payment Services and Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/1212). The Government is seeking a further extension to the transitional period for third country benchmarks through primary legislation. The Act will make further amendments to Article 51 to extend the transitional period for third country benchmarks to the end of 2025.