EU Benchmarks Regulation: Specifying an exemption for spot FX benchmarks

The revised EU Benchmarks Regulation allows the EU Commission to exempt certain spot FX benchmarks from the scope of application by means of a Delegated Act so that they can continue to be used as reference in derivatives for hedging risks with currencies that are not fully convertible. The EU Commission has consulted market participants on the specification of this exemption. In our contribution to the consultation, we support the analysis by the International Swap Dealers Association (ISDA). 

Deutsches Aktieninstitut advocates exemptions in relation to benchmarks on the Indian Rupee, the Philippine Peso, the Taiwanese Dollar and the Korean Won.