Benchmarks Regulation: our new powers, policy and decision-making

We are setting out the considerations we will take into account when exercising our powers, as proposed under the Financial Services (FS) Bill, to ‘designate’ a critical benchmark and to impose changes to that benchmark. This will inform how we use our new powers to help manage an orderly wind-down of critical benchmarks, such as LIBOR.

Benchmarks are used in a wide range of markets to help set prices, measure performance, or work out amounts payable under financial contracts. They are integral to the functioning of the financial markets.

Under the amendments to the Benchmarks Regulation in the FS Bill, we have new powers. The FS Bill requires us to publish Statements of Policy before exercising certain powers and we must have regard to them when exercising these powers. We said in June that we would engage with the market when developing these Statements of Policy.

We consulted on our proposals in November 2020 and are now setting out our final policy on:

We took account of responses to our engagement. 

Who these documents apply to

We expect this work to be of interest to:

  • administrators of critical benchmarks 
  • contributors to critical benchmarks 
  • all users of critical benchmarks, both regulated and unregulated

Next steps

We plan to consult in Q2 of 2021 on our approach to the exercise of our powers under the proposed Article 21A and Article 23C. We strongly encourage firms to respond to these consultations.

We will conduct a further consultation in 2021 in relation to any decision to exercise the proposed Article 23D power in respect of LIBOR. We strongly encourage firms to respond to these consultations.

We may reissue a revised Statement of Policy in future if our policy changes. 


We explain in our overview document where a Statement of Policy would be expected and the background and context to this work.