First public consultation on developing a euro unsecured overnight interest rate

The European Central Bank (ECB) has decided to develop a daily euro unsecured overnight interest rate based on data already available to the Eurosystem. The rate, which will be finalised before 2020, will complement existing benchmark rates produced by the private sector and will serve as a backstop reference rate. It will be based entirely on transactions in euro that are reported by banks in accordance with the ECB’s money market statistical reporting (MMSR).

The ECB is calling on market participants and all other interested parties to provide comments on the high level features of a new unsecured overnight interest rate. Through the consultation, the ECB aims to collect the views of stakeholders regarding the main features of the rate and its publication timing. The consultation document provides an overview of the factors supporting the ECB’s decision to publish an unsecured overnight rate as well as the consultation questions that address design features of the rate.
The consultation follows the ECB’s decision to develop a euro unsecured overnight interest rate based on data already available to the Eurosystem. The interest rate would complement existing benchmark rates produced by the private sector and serve as a backstop reference rate. This consultation is a first step. A second consultation related to the methodology will follow later in the process. This consultation gives interested parties the opportunity to comment on the high-level features of a new unsecured overnight interest rate.
Deadline for submitting comments: 17:00 CET on 12 January 2018. Send your comments to: ECB-overnight-rate@ecb.europa.eu. Please put “First public consultation on developing a euro unsecured overnight interest rate” in the subject line. Only comments received before this deadline will be considered.
Publication of comments
After the consultation period closes, a high-level summary of the replies will be published on this website of the ECB.
Source: https://www.ecb.europa.eu/