The EURIBOR and EONIA Reform: Achieving Regulatory Compliance While Protecting Financial Stability

35 Pages Posted: 22 Jan 2021

See all articles by Randy Priem

Randy Priem

Saint-Louis University, Brussels; KU Leuven; Financial Services and Markets Authority (FSMA)

Ward Van Rie

Financial Services and Markets Authority (FSMA)

Date Written: October 1, 2020

Abstract

This article describes the events leading up to the EURIBOR reform and the efforts to make EURIBOR compliant with the European Benchmark Regulation. It also explains the actions undertaken to transition from EONIA towards €STER and the reasoning behind the choice to recalibrate EONIA into €STER plus a spread. Although EURIBOR is considered BMR-compliant since 2 July 2019 and EONIA can continue to be used until 3 January 2022, this article explains why market participants should not be dis-incentivized to already take actions to provide for fallback rates to EURIBOR in their legal documentation, and to move away from EONIA.

Keywords: Benchmarks, Indices, EURIBOR, EONIA, Regulation

JEL Classification: E43, E44, G18, G21, G28, K23

Suggested Citation

Priem, Randy and Van Rie, Ward, The EURIBOR and EONIA Reform: Achieving Regulatory Compliance While Protecting Financial Stability (October 1, 2020). Available at SSRN: https://ssrn.com/abstract=3702878 or http://dx.doi.org/10.2139/ssrn.3702878

Randy Priem (Contact Author)

Saint-Louis University, Brussels ( email )

43 Boulevard du Jardin botanique
Brussels, 1000
Belgium

KU Leuven ( email )

Oude Markt 13
Leuven, Vlaams-Brabant 3000
Belgium

Financial Services and Markets Authority (FSMA) ( email )

Rue du Congrès/Congresstraat 12-14
Brussels, 1000
Belgium

Ward Van Rie

Financial Services and Markets Authority (FSMA) ( email )

Rue du Congrès/Congresstraat 12-14
Brussels, 1000
Belgium

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