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The Euribor and EONIA Reform: Achieving Regulatory Compliance while Protecting Financial Stability

Randy Priem


Ward Van Rie

Randy Priem 1

Ward Van Rie 2

  1. Katholieke Universiteit Leuven, Universite Saint-Louis, and Financial Services and Markets Authority, Belgium. 1

  2. Financial Services and Markets Authority, Belgium 2

on Google Scholar
on PubMed

Pages: 50-69

DOI: 10.18488/journal.62.2021.82.50.69

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Article History:

Received: 22 September, 2020
Revised: 26 October, 2020
Accepted: 06 November, 2020
Published: 18 November, 2020


Based on an extensive review of the academic and legal literature combined with a screening of news articles and policy papers, this article is the first to describe in great detail the events leading up to the EURIBOR reform and the efforts to make EURIBOR compliant with the European Benchmark Regulation. It documents the development of the hybrid EURIBOR methodology to ensure the benchmark to be anchored to transactions as much as possible thereby reducing manipulative behavior. The article further explains the actions undertaken by the administration and the EU RFR Working Group to transition from EONIA towards €STER and the reasoning behind the choice to recalibrate EONIA into €STER plus a spread. Although EURIBOR is considered BMR-compliant since 2 July 2019 and EONIA can continue to be used until 3 January 2022, this article explains why market participants should not be disincentivized to already take actions to provide for fallback rates to EURIBOR in their legal documentation, and to move away from EONIA. This study addresses various fallback methodologies.
Contribution/ Originality
This study is the first to provide a holistic overview of the reforms of the EURIBOR and the EONIA, as well as the on-going work to transition away from EONIA towards the Euro short-term rate (€STER). The study documents the efforts made by the administrator, the panel banks as well as by the FSMA to reform EURIBOR and to keep it operational, at least in the medium term. It explains the choice of the EU RFR Working Group and the administrator to recalibrate EONIA into €ster + a spread of 8.5 basis points.


Benchmarks, Indices, EURIBOR, EONIA, Regulation, Risk-free rates.


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This study received no specific financial support.

Competing Interests:

The authors declare that they have no competing interests.


Both authors contributed equally to the conception and design of the study.

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