Future regulatory regime for benchmarks and benchmark administrators
This consultation seeks views on the proposal to reform the UK’s existing benchmarks regime and replace it with the Specified Authorised Benchmarks Regime (SABR).
The UK is home to world-class financial markets, leading in commodity trading, foreign exchange, bond issuance, and derivatives clearing. Benchmarks are integral to these markets, supporting the allocation of capital and risk across the economy.
The Benchmarks Regulation, introduced in 2018 by the EU, was designed to address risks and misconduct in widely used benchmarks. While the Benchmarks Regulation has helped maintain market integrity, the financial landscape has evolved significantly. The government now recognises the need for a more agile, proportionate framework tailored to the UK.
The Specified Authorised Benchmarks Regime (SABR) will replace the Benchmarks Regulation. Under SABR, only those benchmarks or benchmark administrators that are designated due to their importance to the integrity of UK financial markets would be regulated. This would ensure that market participants can continue to access a wide range of benchmarks to support UK financial services and economic growth.