The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, and the UK Financial Conduct Authority (FCA) have agreed on a new Memorandum of Understanding (MoU) regarding cooperation and the exchange of information with respect to benchmark administrators based in the UK. The MoU concerns benchmark administrators who seek recognition or are recognized in the EU.

The new MOU with the UK FCA enables ESMA to start recognizing benchmark administrators from the UK.

Background

Under the Benchmark Regulation, when a non-EU benchmarks administrator applying for recognition in the EU is subject to supervision in its home jurisdiction, ESMA must first establish an MOU with the relevant non-EU authority as a prerequisite for ESMA to be able to grant recognition to that non-EU administrator.