Working group on Euro risk-free rates launches consultation on EONIA to €STR transition
Today the EUR risk-free rates working group published a consultation paper on the “EONIA to €STR legal action plan”, reaching out to market participants about the need of implementing a legal action plan to ensure a smooth transition from EONIA to €STR in new and legacy contracts.
The consultation highlights the potential consequences if legacy contracts are not amended or if market participants are not operationally ready to use €STR. It also deals with the Benchmark Regulation (BMR) requirement of including fall-back clauses in contracts referencing benchmarks (BMR Article 28.2).
The European Securities and Markets Authority (ESMA) is part of the working group and encourages stakeholders to provide feedback by 12 of June.