Changes from adopted text to adopted text

RemovedTherefore, it is appropriate that by 31 December 2028 the Commission presents a report, on the basis of input from ESMA, assessing the availability of ESG benchmarks in European and global markets and their market up-take, analysing whether they would be considered significant benchmarks, and studying the costs and effects on market availability and the evolving nature of the sustainable indicators and the methods used to measure them. Furthermore, it should assess the need to regulate benchmarks making ESG-related claims, with the aim to maintain an adequate level of protection of users of those benchmarks as well as a high level of transparency, reduce the risk of greenwashing and ensure coherence with other EU legislation on sustainable disclosure requirements. That report should be accompanied by an impact assessment and, where appropriate, a legislative proposal.

Removed(21) To ensure a seamless transition to the application of the rules introduced under this Regulation administrators previously supervised under Regulation (EU) 2019/2089 should keep existing registrations, authorisations, recognitions or endorsements for nine months after the entry into application of this amending Regulation. That period is intended to give competent authorities and ESMA sufficient time to decide whether any of the previously supervised administrators should be designated in accordance with this amending Regulation. If designated, administrators previously authorised, registered, endorsed or recognised or administrators who voluntarily opt-in to this Regulation, should be allowed to retain their previous status without the need to re-apply. Administrators of significant benchmarks should, in any case, be allowed to retain their status as authorised, registered, endorsed or recognised benchmark administrators.

Removed(22) In order to give competent authorities and ESMA the necessary time to gather information on potential significant benchmarks and to adapt existing infrastructure to the new framework proposed under this amending Regulation, the date of application of this Regulation should be deferred.

Removed(23) Regulation (EU) 2016/1011 should therefore be amended accordingly,

RemovedHAVE ADOPTED THIS REGULATION:

RemovedArticle 1

RemovedAmendments to Regulation (EU) 2016/1011

RemovedRegulation (EU) 2016/1011 is amended as follows:

Removed(1) Article 2 is amended as follows:

Removed(a) the following paragraph is inserted:

Removed‘1a. Titles II, III, with the exception of Articles 23a to 23c, IV and VI .apply only in respect of critical benchmarks, significant benchmarks, EU Climate Transition, Benchmarks and EU Paris-aligned Benchmarks. Article 10 in Title II and Titles III, IV and VI apply to commodity benchmarks subject to Annex II’;

Removed(b) in paragraph 2, point (g) (i) is deleted;

Removed(2) in Article 3, paragraph 1 is amended as follows:

Removed(-a) in point (17), point (m) is replaced by the following:

Removed‘(m) an administrator authorised or registered pursuant to Article 34’;

Removed(a) point (22a) is deleted;

Removed(b) point (27) is deleted;

Removed(3) Article 5 is amended as follows:

Removed(a) in paragraph 5, second subparagraph, the last sentence is deleted ;

Removed(b) paragraph 6 is deleted;

Removed(4) Article 11 is amended as follows:

Removed(a) in paragraph 5, first subparagraph, the last sentence is deleted;

Removed(b) paragraph 6 is deleted;

Removed(5) Article 13 is amended as follows:

Removed(a) in paragraph 3, first subparagraph, the last sentence is deleted;

Removed(b) paragraph 4 is deleted;

Removed(6) Article 16 is amended as follows:

Removed(a) in paragraph 5, second subparagraph, the last sentence is deleted;

Removed(b) paragraph 6 is deleted;

Removed(7) in Title III, the title of Chapter 2 is replaced by the following:

Removed‘Interest rate benchmarks’;

Removed(7a) in Article 18 (1), the second subparagraph is replaced by the following:

Removed‘Article 25 shall not apply to the provision of, and contribution to, interest rate benchmarks.’;

Removed(8) Article 18a is deleted;

Removed(8a) in Article 19(1), the second subparagraph is replaced by the following:

Removed‘Article 25 shall not apply to the provision of, and contribution to, commodity benchmarks.’ ;

Removed(9) in Article 19a, the following paragraphs are added:

Removed‘4. Administrators that are not included in the ESMA register referred to in Article 36 shall not :

Removed(a) provide or endorse EU Climate Transition Benchmarks or EU Paris-aligned Benchmarks;

Removed(b) indicate or suggest, in the name of the benchmarks they make available for the use in the Union or in the legal or marketing documentation for those benchmarks, that the benchmarks they make available comply with the requirements applicable to the provision of EU Climate Transition Benchmarks or EU Paris-aligned Benchmarks.’

Removed4 a. Administrators shall include the term “EU CTB” in the name of the EU Climate Transition Benchmarks and the term “EU PAB” in the name of the EU Paris Aligned Benchmarks.;

Removed(10) Article 19d is replaced by the following:

Removed‘Article 19d

RemovedEndeavour to provide EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks.

RemovedAdministrators which are located in the Union and provide significant benchmarks determined on the basis of the value of one or more underlying assets or prices shall endeavour to provide one or more EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks.’;

Removed(11) Article 24 is replaced by the following:

Removed‘Article 24

RemovedSignificant benchmarks

Removed1. A benchmark which is not a critical benchmark shall be significant where either of the following conditions is met:

Removed(a) the benchmark is used directly or indirectly within a combination of benchmarks within the Union as a reference for financial instruments or financial contracts or for measuring the performance of investments funds, that have a total average value of at least EUR 50 billion on the basis of the characteristics of the benchmark, including:

Removed(i) the range of maturities or tenors of the benchmark, where applicable, over a period of six months;

Removed(ii) all the currencies or other units of measurement of the benchmark, where applicable, over a period of six months; and

Removed(iii) all the return calculation methodologies, where applicable, over a period of six months;

Removed(b) the benchmark has been designated as significant in accordance with the procedure laid down in paragraphs 3, 4 and 5 or the procedure laid down in paragraph 6.

Removed2. An administrator shall immediately notify ESMA and, if located in an EU Member State the competent authority of that Member State▌, where one or several of that administrator’s benchmarks exceed the threshold referred to in paragraph 1, point (a). Following receipt of that notification, ▌ESMA▌ shall publish a statement on its website stating that that benchmark is significant either in one Member State or within the Union.

RemovedAn administrator shall, upon request, provide ESMA and the competent authority of the Member State where it is located ▌with information as regards whether the threshold referred to in paragraph 1, point (a) has been effectively exceeded.

RemovedWhere a competent authority or▌ ESMA has clear and demonstrable grounds to consider that a benchmark exceeds the threshold referred to in paragraph 1, point (a), the competent authority or ESMA may issue a notice stating that fact. Such a notice shall trigger the same obligations for the benchmark administrator as a notification as referred to in paragraph 2. At least 10 working days before issuing such notice, the competent authority or ESMA shall inform the administrator of the benchmark concerned of its findings, and invite that administrator to submit any observation.

Removed3. A competent authority may, having consulted ESMA in accordance with paragraph 4 and taking into account its advice, designate a benchmark provided by an administrator located in the Union that does not meet the condition laid down in paragraph 1, point (a), as significant where that benchmark fulfils all of the following conditions:

Removed(a) the benchmark has no, or very few, appropriate market-led substitutes;

Removed(b) in the event that the benchmark ceases to be provided, or is provided on the basis of input data no longer fully representative of the underlying market or economic reality or on the basis of unreliable input data, there would be significant and adverse impacts on▌ financial stability, consumers, the real economy, or the financing of households and businesses in its Member State or in the Union;