UK Overhauls Benchmark Rules, Exempting 90% of Providers in Bid to Boost Financial Flexibility

The UK Treasury is dismantling its stringent benchmark regime, exempting nearly 90% of providers from oversight in a MOVE to streamline financial markets. The new system allows asset managers unrestricted access to global benchmarks without waiting for compliance with local rules—a sharp departure from the EU-derived framework.

Only high-impact benchmarks will remain regulated under the Financial Conduct Authority, leaving firms like LSEG and S&P Global under scrutiny while freeing JPMorgan Chase and Bloomberg from the regime. The policy shift aligns London with New York’s lighter-touch approach as Britain competes for post-Brexit financial relevance.

The abrupt reversal comes just a year after the FCA warned providers about governance failures and data quality issues. Critics argue the deregulation risks reintroducing the very problems the 2018 benchmark reforms sought to fix—manipulation scandals like LIBOR still loom large in market memory.