Article 20 Critical benchmarks: conditions and other mattersF29

exceeds the threshold in paragraph 1(a); or

fulfils the criterion in paragraph 1(c)(ii) and there is reason to believe that it also fulfils the criterion in paragraph 1(c)(iii).

the benchmark is used directly or indirectly within a combination of benchmarks as a reference for financial instruments or financial contracts or for measuring the performance of investment funds, having a total value of at least EUR 500 billion on the basis of all the range of maturities or tenors of the benchmark, where applicable;

the benchmark is based on submissions by contributors the majority of which are located in F3the United Kingdom and is recognised as being critical F4... in accordance with the procedure laid down in paragraphs 2, 3, 4 and 5 of this Article;

the benchmark fulfils F5both of the following criteria:

1. (i)

   F6...

2. (ii)

   the benchmark has no, or very few, appropriate market-led substitutes;

3. (iii)

   in the event that the benchmark ceases to be provided, or is provided on the basis of input data no longer fully representative of the underlying market or economic reality or on the basis of unreliable input data, there would be significant and adverse impacts on market integrity, financial stability, consumers, the real economy, or the financing of households and businesses in F7the United Kingdom;

F8...

the benchmark has a sufficient number of appropriate market-led substitutes that it does not fulfil the criterion in point (c)(ii), but:

the value of financial instruments and financial contracts that reference the benchmark and the value of investment funds referencing the benchmark for measuring their performance within the F14United Kingdom and their relevance in terms of the total value of financial instruments and of financial contracts outstanding, and of the total value of investment funds, in the United Kingdom;

the value of financial instruments and financial contracts that reference the benchmark and the value of investment funds referencing the benchmark for measuring their performance within the United Kingdom and their relevance in terms of the gross national product of the United Kingdom;

any other figure to assess on objective grounds the potential impact of the discontinuity or unreliability of the benchmark on market integrity, financial stability, consumers, the real economy, or the financing of households and businesses in the United Kingdom.

the FCA has recommended that the benchmark is recognised as critical in accordance with the procedure specified in paragraphs 2 and 3; and

the Treasury F18determine that the FCA's assessment complies with the requirements of paragraph 3.

review F20the value in point (a) of paragraph 1 (“the paragraph 1(a) value”) in the light of market, price and regulatory developments and the appropriateness of the classification of benchmarks with a total value of financial instruments, financial contracts, or investment funds referencing them that is close F21to the paragraph 1(a) value; and

provide a written report to the Treasury setting out the results of the review and making a recommendation as to whether F22the paragraph 1(a) value should be amended.

within the period of two years beginning with IP completion day; and

thereafter, at intervals of at least every two years, with each interval beginning with the date on which the last report was provided.

specify how the nominal amount of financial instruments other than derivatives, the notional amount of derivatives and the net asset value of investment funds are to be assessed, including in the event of an indirect reference to a benchmark within a combination of benchmarks, in order to be compared with the F24values referred to in paragraph 1 of this Article and in point (a) of Article 24(1);

amend F26the value in point (a) of paragraph 1 having regard to:

specify how the criteria referred to in point (c)(iii) of paragraph 1 of this Article are to be applied, taking into consideration any data which helps assess on objective grounds the potential impact of the discontinuity or unreliability of the benchmark on market integrity, financial stability, consumers, the real economy, or the financing of households and businesses in F27the United Kingdom.