Benchmarks LIBOR transition Critical Benchmarks
Title III of the BMR places different requirements on supervised entities that use benchmarks, supervised contributors to benchmarks, and benchmarks administrators based on the classification of a benchmark. Benchmarks which are classified as "critical" are subject to the most stringent regulatory requirements. LIBOR is classified as a critical benchmark.
	Under the BMR, a benchmark is deemed critical where it meets certain qualitative and quantitative criteria stipulated in Article 20. Where certain thresholds are met, the benchmark triggers the necessary criteria to be designated a critical benchmark by HM Treasury. Where certain other listed criteria are met, or where a combination of these criteria are met, a benchmark can also be designated as critical if the FCA has recommended that the benchmark is recognised as critical and HM Treasury considers that the FCA’s assessment in this regard complies with Article 20(3). Administrators of critical benchmarks must apply for authorisation by the FCA by 31 December 2021 for their benchmarks to continue to be used by UK supervised entities after this date.