UK BMR Reform Consultation Response

ISDA News

Published March 11th, 2026

Detected March 13th, 2026

Summary

ISDA, GFXD, UK Finance, and LMA have jointly responded to HM Treasury's consultation on reforming the UK Benchmark Regulation (BMR). The response supports replacing the current UK BMR with a new regime that would regulate only benchmarks posing systemic risks.

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What changed

Industry associations ISDA, GFXD, UK Finance, and LMA have submitted a joint response to HM Treasury's (HMT) consultation regarding the future regulatory regime for benchmarks and benchmark administrators in the UK. The response supports HMT's proposal to replace the existing UK Benchmark Regulation (BMR) with a new framework that would focus regulation on benchmarks and administrators deemed to pose systemic risks to UK financial markets, moving away from the current broad regulatory scope inherited from the EU.

The associations emphasize the need for clarity in the criteria for designating benchmarks under the proposed Specified Authorised Benchmarks Regime (SABR) to prevent over-designation. This consultation is a precursor to new legislation that will repeal and replace the UK BMR, with firm-facing requirements to be delegated to the Financial Conduct Authority (FCA). A subsequent FCA consultation on detailed rules is expected, though a date has not yet been set. Regulated entities should monitor the upcoming FCA consultation for specific compliance obligations.

What to do next

Monitor upcoming FCA consultation on detailed firm-facing rules for UK BMR reform.
Review proposed criteria for designated benchmarks under the SABR regime once published.

Source document (simplified)

Public Policy
Europe
ISDA, GFXD, UK Finance, LMA Respond to HMT on UK BMR Reform

ISDA, GFXD, UK Finance, LMA Respond to HMT on UK BMR Reform

On March 11, ISDA, the Global Foreign Exchange Division of the Global Financial Markets Association, UK Finance and the Loan Market Association responded jointly to a consultation from His Majesty’s Treasury on the future regulatory regime for benchmarks and benchmark administrators.

The associations support the HMT proposals to replace the existing UK Benchmark Regulation (BMR), which was onshored from the EU and has wide regulatory reach, with a regime that would regulate only those benchmarks and benchmark administrators that may pose systemic risks to UK financial markets.

Following reforms to the EU BMR that came into effect on January 1, 2026, the UK became the only jurisdiction with a benchmarks regime that regulates all benchmarks produced within the jurisdiction. Under the proposed new Specified Authorised Benchmarks Regime (SABR), HMT would designate benchmarks that meet specified criteria, and only designated benchmarks and their administrators would be regulated. In their response, the associations emphasize the need to ensure those criteria are not ambiguous and don’t lead to over-designation.

The HMT consultation will result in new legislation that repeals and replaces the UK BMR and delegates firm-facing requirements to the FCA. This consultation will be followed by an FCA consultation on the detailed firm-facing rules. A date has not yet been fixed for the FCA consultation.

Tags:

Benchmarks, BMR Regulation, Financial Conduct Authority (FCA), HM Treasury

Documents (1)

ISDA, GFXD, UKF, LMA Response to HMT Consultation on UK BMR(pdf)

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