rec_9

(9) Contracts other than financial contracts as defined in Regulation (EU) 2016/1011, or financial instruments which are not covered by the definition of financial instrument of that Regulation, but which also reference benchmarks that are in cessation or are being wound down, might also significantly disrupt the functioning of the financial markets in the Union. Many entities use such benchmarks but do not qualify as supervised entities. Consequently, the parties to such contracts and holders of such financial instruments would not benefit from a replacement for a benchmark. In order to mitigate the potential impacts on market integrity and financial stability as much as possible and to provide for protection against legal uncertainty, the mandate of the Commission to designate a replacement for a benchmark should apply to any contract and any financial instrument as defined in Directive 2014/65/EU that is subject to the law of a Member State. In addition, the designated replacement for a benchmark should apply to contracts that are subject to the law of a third country but all the parties to which are established in the Union, in cases where the contract meets the requirements of this Regulation and where the law of that third country does not provide for an orderly wind-down of a benchmark. This extension of the scope should be without prejudice to the provisions of Regulation (EU) 2016/1011 that are not amended by this Regulation.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-18 · Text as adopted (Official Journal); later amendments are not incorporated in this text.