ESMA Recognizes CME Group Benchmark Administration as Third-Country Administrator

Decision provides certainty for European institutions using CME Term SOFR Reference Rates

Apr. 16, 2026 at 11:21am

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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. This decision was made in response to the significant usage of CME Term SOFR Reference Rates by market participants in Europe, ensuring European institutions can continue to use the benchmark without disruption.

Why it matters

The ESMA recognition underscores the critical role of CME Term SOFR as a global benchmark for commercial U.S. dollar lending, with over €100 billion in OTC derivatives traded by European participants in 2025. This decision provides regulatory certainty and allows European institutions to continue relying on the transparent and reliable reference rates.

The details

CME Term SOFR Reference Rates are the first and only benchmark to be formally endorsed by the Alternative Reference Rates Committee (ARRC). In 2025, the rates were referenced in $1.3 trillion of global transactions and $11 trillion of active commercial loans.

  • In 2025, the CME Term SOFR Reference Rates were referenced in over €100 billion of OTC derivatives traded by European participants and $1.3 trillion globally.
  • As of 2025, the CME Term SOFR Reference Rates were referenced in $11 trillion of active commercial loans.

The players

CME Group

The world's leading derivatives marketplace, enabling clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data.

CME Group Benchmark Administration Limited (CBA)

A subsidiary of CME Group that has been recognized by ESMA as a third-country benchmark administrator under the EU Benchmarks Regulation.

European Securities and Markets Authority (ESMA)

The European Union's financial markets regulator, responsible for recognizing third-country benchmark administrators under the EU Benchmarks Regulation.

Alternative Reference Rates Committee (ARRC)

The group that formally endorsed the CME Term SOFR Reference Rates as the global benchmark for commercial U.S. dollar lending.

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What they’re saying

“This recognition underscores the significant role played by CME Term SOFR for European institutions managing USD interest rate exposure. 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.”

— Max Ruscher, Global Head of Benchmark Administration at CME Group

The takeaway

The ESMA recognition of CME Group Benchmark Administration as a third-country benchmark administrator solidifies the critical role of CME Term SOFR Reference Rates as a global standard for commercial U.S. dollar lending, providing regulatory certainty and allowing European institutions to continue relying on these transparent and reliable reference rates.