European Central Bank Consults on EURIBOR Fallbacks

The European Central Bank has published two consultation papers on fallback trigger events and fallback rates for EURIBOR. Responses to the consultations should be submitted by January 15, 2021.

The consultation on fallback trigger events sets out a series of generic EURIBOR fallback trigger events, which would cause a contract to fall back to an alternative reference rate in the event of a temporary or permanent cessation of EURIBOR. The consultation covers cash products and derivatives transactions. Market participants would be able to include the fallback trigger events in EURIBOR-referencing contracts.

The consultation on fallback rates seeks the views of markets participants on the most appropriate EURIBOR fallback provisions for cash products, with particular reference to the most appropriate fallback rate methodology and the market conventions used to calculate the compounded term rate.

View the ECB's consultation on EURIBOR fallback trigger events.

View the ECB's consultation on  EURIBOR fallback rates.

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