Working group on euro risk-free rates
The ECB has set up a working group, together with the Financial Services and Markets Authority (FSMA), the European Securities and Markets Authority (ESMA) and the European Commission, which is tasked with, among other things, identifying and recommending alternative risk-free rates. Such rates could serve as a basis for an alternative to current benchmarks used in a variety of financial instruments and contracts in the euro area.
The group will explore possible approaches for ensuring a smooth transition to these rates, if needed in the future.
In such a case, careful transition planning by market participants will be needed to minimise disruption to markets and consumers and to safeguard the continuity of contracts to the greatest extent possible, including contracts that currently reference a term rate rather than an overnight rate. These tasks require the involvement of public authorities and a concerted effort by all market participants to facilitate a gradual reduction in the current reliance on interbank offered rates.
Structure of the group and commitment to transparency
The working group is chaired by a private sector representative and the ECB provides the secretariat.
The working group will regularly consult market participants and end users, as well as gather feedback from other public authorities. Its terms of reference are publicly available and the group will regularly report on its meetings. This is to ensure transparency throughout the entire process of identifying and adopting new risk-free rates.
Ensuring broad market acceptance is vital for the effective functioning of any alternative to existing benchmark rates.
Applicants should fill in the dedicated application form provided below and send it by email to EuroRFR@ecb.europa.eu. Applicants are expected to provide a brief overview of their motivation for applying and state their willingness to dedicate time and resources to any work streams to which they are allocated.
- 20 April
- 17 May
- 11 July
- 13 September
- 26 February
Item 1: Welcome address (ECB)
Item 2: Introducing the mandate of the working group (FSMA)
Item 3.1: FSB recommendations and examples of the other working groups
Item 3.2: ISDA Fallbacks and other Benchmarks Initiatives
Item 3.3: Euribor and EONIA reforms
Item 3.4: EU Benchmark Regulation
Item 4: Determine mandate and governance
Item 5: ESMA presentation on contracts subgroup
Item 6: Concluding remarks (ESMA)