Updates: Banking – Implementing Regulation (EU) 2021/1848 – Benchmark overnight index average
EA BriefFinance LawFinanceiro
25 October, 2021On the 21st October the Implementing Regulation (EU) 2021/1848 was published, setting forth the substitution, from 3rd January 2022, of the EONIA by the Euro short-term rate (€STR) as the rate for the Euro overnight index average.
This new regulation derives from the studies being implemented at EU level in order to establish a new benchmark index for overnight transactions, since on February 2018, the European Money Market Institute (EMMI), acting as administrator of EONIA, announced that compliance of EONIA with Regulation (EU) 2016/1011 could not be achieved by the time such obligations would apply.
The IMPLEMENTING REGULATION (EU) 2021/1848 may be consulted here.
