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    ECB Issues Guideline and Publication Time for Euro Short-Term Rate

    July 11, 2019

    ECB published a guideline that transposes the IOSCO principles on financial benchmarks to ensure that an appropriate and transparent control framework is in place. The guideline (ECB/2019/19) covers the governance of the €STR, along with the administration and oversight of the €STR determination process. The guideline shall take effect on the day of its notification to the national central banks, which shall comply with the guideline from October 01, 2019. Additionally, ECB has decided that, as of the start date on October 02, 2019, the euro short-term rate (€STR) will be published at 08:00 CET on each TARGET2 business day.

    The guideline on €STR governs the euro short-term rate and establishes the ECB responsibility for its administration and the oversight of the euro short-term rate determination process. It also establishes the tasks and responsibilities of ECB and national central banks with respect to their contribution to €STR determination process and other business procedures. The guideline includes articles on definitions, underlying interest represented by €STR, outsourcing of tasks and responsibilities, control framework, cessation of €STR, complaints procedure, compliance statement, and periodic reporting and review.

    €STR will be published via the Market Information Dissemination (MID) platform and through the ECB Statistical Data Warehouse. Technical specifications for the rate publication will be made available in September 2019. If errors are detected following the publication of €STR that affect €STR by more than 2 basis points, ECB will revise and republish €STR on the same day at 09:00 CET. No changes will be made to €STR after that time. 

     

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    Keywords: Europe, EU, Banking, Securities, EONIA, €STR, ECB/2019/19, Guideline, Interest Rate Benchmarks, IOSCO, ECB

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