What to expect from the reform of European benchmarks
At the G20’s request, the Financial Stability Board (FSB) started work on an international interest rate benchmark reform in 2014, aimed at making these indices more transparent, representative and reliable.
Working groups were set up for Europe to develop new representative interest rate benchmarks, based on real transactions, known as risk-free rates (RFR). This initiative included a working group made up of public and private financial industry stakeholders, with the ECB providing the secretariat. This group was tasked with issuing recommendations on benchmarks with the aim of complying with political and regulatory requirements. Official information on this initiative is available on the ECB website at the following address: https://www.ecb.europa.eu/paym/initiatives/interest_rate_benchmarks/html/index.en.html
Certain aspects will not change as of October 2, 2019
Changes as of October 2, 2019
€STR (Euro Short-Term Rate)
Teams at Natixis are available to support clients and provide them with solutions to manage the coexistence of these two benchmarks and manage their operations that were initially indexed to EONIA.
Official information on these benchmarks is available at the following addresses:
In December 2018, a reform was initiated of the EURIBOR, also managed by the EMMI, with the disappearance of the 2-week, 2-month and 9-month tenors, as well as the panel-based contribution system.The publication of the EURIBOR remains unchanged and contracts/loans/financing using the index remain.
Official information on the EURIBOR reform is available at the following address: https://www.emmi-benchmarks.eu/euribor-org/euribor-reform.html