TITLE IIIU.K.REQUIREMENTS FOR DIFFERENT TYPES OF BENCHMARKS

CHAPTER 4U.K.Critical benchmarks

Article 21U.K.Mandatory administration of a critical benchmark

1.If an administrator of a critical benchmark intends to cease providing such benchmark, the administrator shall:

(a)immediately notify [F1the FCA]; and

(b)within four weeks of such notification submit an assessment of how the benchmark:

(i)

is to be transitioned to a new administrator; or

(ii)

is to be ceased to be provided, taking into account the procedure established in Article 28(1).

During the period referred to in point (b) of the first subparagraph, the administrator shall not cease provision of the benchmark.

2.Upon receipt of the assessment of the administrator referred to in paragraph 1, [F2the FCA] shall:

F3(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)within four weeks, make its own assessment of how the benchmark is to be transitioned to a new administrator or be ceased to be provided, taking into account the procedure established in accordance with Article 28(1).

During the period of time referred to in point (b) of the first subparagraph of this paragraph, the administrator shall not cease the provision of the benchmark without the written consent of [F4the FCA].

3.Following completion of the assessment referred to in point (b) of paragraph 2, [F5the FCA] shall have the power to compel the administrator to continue publishing the benchmark until such time as:

(a)the provision of the benchmark has been transitioned to a new administrator;

(b)the benchmark can be ceased to be provided in an orderly fashion [F6(whether by the exercise of the FCA's powers under Article 23D or otherwise)]; or

(c)the benchmark is no longer critical.

For the purposes of the first subparagraph, the period for which [F5the FCA] may compel the administrator to continue to publish the benchmark shall not exceed 12 months.

[F7By the end of that period, [F5the FCA] shall review its decision to compel the administrator to continue to publish the benchmark. [F5The FCA] may, where necessary, extend that period by an appropriate period not exceeding 12 months. The maximum period of mandatory administration shall not exceed [F810 years].]

[F93A.If the FCA decides to compel the administrator to continue publishing the benchmark under paragraph 3, the FCA must assess the capability of the benchmark to measure the underlying market or economic reality, taking into account, among other things, the procedure established by the administrator in accordance with Article 28(1).

3B.After making its assessment under paragraph 3A, the FCA must give the administrator—

(a)a written notice stating that it considers that the benchmark is not representative of the market or economic reality that it is intended to measure or that the representativeness of the benchmark is at risk, or

(b)a written notice stating that it considers that the representativeness of the benchmark is not at risk.

3C.The FCA must make its assessment under paragraph 3A, and give the notice under paragraph 3B, before the end of the period of 28 days beginning with the day on which the FCA notifies the administrator of its decision to compel the administrator to continue publishing the benchmark.]

4.Without prejudice to paragraph 1, in the event that the administrator of a critical benchmark is to be wound down due to insolvency proceedings, [F10the FCA] shall make an assessment of whether and how the critical benchmark can be transitioned to a new administrator or can cease to be provided in an orderly fashion, taking into account the procedure established in accordance with Article 28(1).

Textual Amendments