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IBOR Reform

IBOR Reform

The IBOR reform is the biggest change in the capital markets since the introduction of the Euro at the start of the 21st century. For the past decade, the global regulatory community has driven a reform of the interbank offered rates (IBORs) in order to renew confidence in these critical benchmarks.

In the Eurozone, the Euro Interbank Offered Rate (Euribor) and the Euro Overnight Index Average (EONIA) are considered critical benchmarks. In September 2018, the ECB’s Euro Risk-Free Rate Working Group recommended that the Euro Short Term Rate (€STR) shall replace EONIA, while also providing the basis for developing fallbacks for contracts referencing Euribor.

With  the planned discontinuation of EONIA on January 3, 2022, preparation for the transition to €STR is well underway, including the launch of €STR swaps and the upcoming euro discounting switch. Read more on the future development plans from a market infrastructure provider and leading derivatives exchange’s perspective.

Eurex Group is committed to help the market to transition to new risk-free reference rates.

Working Group on Euro Risk-Free Rates

The working group on euro risk-free rates was established to identify and recommend risk-free rates that could serve as a basis for an alternative to current benchmarks used in a variety of financial instruments and contracts in the euro area, such as EONIA and Euribor.

Insight: ECB recommendations for the €STR transition

The Working Group on Euro Risk-free Rates (RfR) recently issued further recommendations on the €STR transition. We spoke to Andreas Franke, who works in Eurex Clearing’s CCP Risk Management Department in the Risk Methodology OTC unit about the working Group, its activities, recommendations and the challenges ahead.

Q&A with Lee Bartholomew

Read now: IBOR Q&A

Why is the current work focusing on EONIA? Which steps are planned in the switch from EONIA to €STR? Find these questions and more answered in the ECB’s IBOR Q&A.
 

Report: Eonia to €STR transition

The shift away from Libor and other traditional interest rate benchmarks is one of the most significant changes in market structure for decades.
The report from Acuiti, focuses on the transition from Eonia to €STR and looks at levels of readiness and the challenges to transition.


 

Contacts

Sales

Philip Simons

T +44 207 8 62 72 39

philip.simons@deutsche-boerse.com


Sales 

Megan Morgan

T +1 312 5 44 10 83

megan.morgan@eurexchange.com

Marketing

Christophe Rilinger

T +49 69 2 11-1 20 53

christophe.rilinger@eurexchange.com