Introduction 

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.''