EU and UK Benchmark Regulation

The European Regulation on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds (the EU BMR) applied from 1 January 2018 and was directly applied in the UK from 1 January 2018. The EU BMR as amended is retained EU law in the UK (UK BMR) and took effect in the UK at the end of the EU Exit Transition Period on 31 December 2020.

The EU BMR introduced a common framework to ensure the accuracy and integrity of indices used as benchmarks in the European Union.  The EU BMR applies to the:

• Provision of benchmarks
• Contribution of input data to a benchmark
• Use of a benchmark within the European Union

Under the amended EU BMR, supervised entities within the European Union may only use benchmarks that remain within the scope of the EU BMR where:

• The benchmark is provided by an EU-based administrator authorised or registered under the EU BMR and included in ESMA’s Register of Administrators.

OR

• The benchmark is provided by a third-country administrator and is included in ESMA’s Registers of Administrators and Third Country Benchmarks through an applicable third-country access pathway, including equivalence, recognition or endorsement.

Amended EU BMR:

The EU BMR was amended by Regulation (EU) 2025/914, which became applicable on 1 January 2026. The amended EU BMR significantly narrows the scope of the regulation and now primarily applies to:

• Critical benchmarks
• Significant benchmarks
• EU Climate Transition Benchmarks (EU CTBs) 
• EU Paris-aligned Benchmarks (EU PABs)
• Certain commodity benchmarks

The third-country transitional provisions under the EU BMR expired on 31 December 2025. Following the end of the transitional period, third-country benchmarks that remain within scope of the EU BMR may only be used in the European Union where their administrators have obtained access through an available third-country regime in accordance with the EU BMR.

ESMA maintains public Registers of Administrators and Third Country Benchmarks, including benchmark administrators and benchmarks that are eligible for use within the European Union.

Under the UK BMR, only the following types of benchmarks may be used by supervised entities within the UK:

• Benchmarks that are provided by UK based administrators who have been granted authorisation or registration under the UK BMR and who are identified on the register maintained by the Financial Conduct Authority (FCA)
• Subject to the third-country transitional provisions which currently apply until 31 December 2030, benchmarks that have been entered onto the FCA Benchmarks Register, which are provided by third-country administrators who have either:

- Satisfied the requirements for equivalence.

- Acquired recognition under the UK BMR.

- Successfully sought endorsement from an UK authorised or registered administrator or other supervised entity for specific benchmarks.

FTSE Russell regulatory status under the UK and EU Benchmarks Regulations

The UK's Financial Conduct Authority (FCA) has granted FTSE International Limited (FIL) authorisation as a benchmark administrator and FIL is listed on the FCA Benchmarks Register.

Authorisation is comprehensive across asset classes, and covers the FTSE, Russell, FTSE Canada equity and fixed income indices that are known to be used as benchmarks in the United Kingdom.

FTSE EU SAS (FES) is authorised as a benchmark administrator by the Autorité des Marchés Financiers (AMF), is listed on the list of Benchmark administrators authorised or registered by the AMF, and is supervised by the European Securities and Markets Authority (ESMA) under the EU Benchmarks Regulation.

Following the end of the EU third-country transitional period on 31 December 2025, in-scope benchmarks administered by FIL are available for use within the European Union through endorsement by FES. Information on FES as an endorsing administrator and on endorsed third-country benchmarks is available through ESMA’s Registers of Administrators and Third Country Benchmarks.

FTSE Russell has established FTSE EU SAS (“FES”), an entity authorised as a Benchmark Administrator and regulated in the European Union (EU) by the Autorité des Marches Financiers (“AMF”) according to the EU BMR.

Following the expiry of the EU third country transitional provisions on 31st December 2025, FES was granted an additional authorisation by the European Securities and Markets Authority (“ESMA”) on 20 July 2026 to endorse under Article 33 of EU BMR, enabling relevant in-scope FTSE Russell indices administered in the UK by FTSE International Limited (“FIL”) to continue to be used by EU supervised entities. Effective of this date, FTSE EU SAS is supervised by ESMA. The final list of endorsed benchmarks has been published on the ESMA public register as follows:

FTSE Russell fully supports the focus of the EU BMR and the UK BMR and is committed to ensuring compliance of its relevant benchmarks with the EU BMR and the UK BMR.

If you have any specific questions, please contact us at info@ftserussell.com.