Finance Industry Warns Benchmark Rules Pose ‘Systemic Risk’ (1)

A consortium of financial trade associations rallied against proposed European Union regulations that would restrict the use of financial benchmarks, warning they could disrupt markets and even pose a systemic risk.

The group, spearheaded by the International Swaps and Derivatives Association, are pushing against a blanket ban against foreign benchmarks that don’t qualify with the EU’s requirements. Instead, they argue benchmarks should be banned on a case-by-case basis.

The proposals are a “source of uncertainty, disruption, competitive disadvantage and potential systemic risk,” they said in a statement late Thursday. Given the difficulty in gaining EU approval, the associations fear ...