ECB’s Holthausen urges market to ditch Eonia

Regulator sees risk in relying on fallbacks to effect switch to €STR – and calls on dealers to educate clients

ECB-Eurotower-in-Frankfurt

A senior European regulator has urged the market to embrace the euro short-term rate, or €STR, after market participants abandoned the new benchmark in favour of the outgoing Eonia during Covid-19 volatility in March and April.

Volumes in €STR have started to recover – and should have received a shot in the arm when clearing houses started using the new rate to discount cleared euro interest rate swaps in July – but they remain lacklustre.

“I would have hoped for more activity at this point,”

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: