Industry Updates

FCA registers Moorgate Benchmarks as benchmark administrator

George Geddes

Financial Conduct Authority FCA

Moorgate Benchmarks has been approved by the Financial Conduct Authority (FCA) as a benchmark administrator under the European Benchmark Regulation (BMR).

BMR is the law introduced by the European Securities and Markets Authority (ESMA), limiting the number of benchmarks being launched throughout the continent following the Libor and Euribor scandals where banks were manipulating their credit worthiness.

ETF issuers will only be able to use indices as a benchmark for their products by authorised benchmark administrators.

The transitioning period for third-country benchmark providers and providers of critical benchmarks to become BMR compliant and registered as a benchmark administrator was extended to 1 January 2022 as companies were not able to keep to the deadline. Since being introduced, there are 45 index providers registered with ESMA including Moorgate Benchmarks and German-based Solactive.

As Moorgate Benchmarks is based in London, in the event the UK leaves the European Union, the company will be able to offer services that allow EU and third country (non-EU countries) index providers to maintain access to the UK financial market.

Tobias Sproehnle, Chief Executive Officer of Moorgate, said in a statement: “The European Benchmarks Regulation is the most important piece of legislation for the index industry, and represents a global standard of excellence in the provision of index services."

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