International derivatives marketplace CME Group today announced that the European Securities and Markets Authority (ESMA) has recognized CME Group Benchmark Administration Limited (CBA) as a third-country benchmark administrator under the EU Benchmarks Regulation (EU BMR).

ESMA’s decision was made in response to the significant usage of CME Term SOFR Reference Rates by market participants in Europe. The decision provides certainty for clients subject to EU BMR.

“This recognition underscores the significant role played by CME Term SOFR for European institutions managing USD interest rate exposure,” said Max Ruscher, Global Head of Benchmark Administration at CME Group. “Most importantly, it ensures European institutions can continue to use the benchmark without disruption, reinforcing our commitment to delivering transparent and reliable reference rates that clients depend upon.”

CME Term SOFR Reference Rates are the global benchmark for commercial U.S. dollar lending. It is the first and only benchmark to be formally endorsed by the Alternative Reference Rates Committee (ARRC).