Refinitiv launches prototype forward-looking €STR term rate

London / Frankfurt / Paris – Today Refinitiv commences publication of a prototype forward-looking euro denominated interest rate – Refinitiv Term €STR.^[1]

The industry-led working group on euro risk-free rates recommends contracts and financial instruments referencing EURIBOR®,^[2] should include robust fallback language to enhance legal certainty and BMR compliance in the event of permanent EURIBOR® discontinuation. Furthermore, the working group recommends forward-looking €STR term rates are suitable fallbacks for specific EURIBOR®-referencing cash products. 

Refinitiv Term €STR is available daily in 1 week, 1 month, 3 months, 6 months and 12 months tenors. It adopts a waterfall methodology that uses dealer-to-client bids and offers quotes from Tradeweb’s institutional trading platform as the primary source and an integrated fallback based upon compounded €STR as the secondary source. The Tradeweb data is collected over 09:00-16:00CET on the day before publication to ensure sufficient quotes are available for a robust prototype. 

Jacob Rank-Broadley, Head of LIBOR Transition, Benchmarks & Indices at Refinitiv, said: “Today’s introduction of a prototype forward-looking term €STR rate will support market participants as they commence testing in preparation for the introduction of robust fallback language in EURIBOR® contracts. This is a key first step towards building a robust regulated benchmark”. 

Firms are able to receive Refinitiv Term €STR free of charge through the full suite of Refinitiv products, including Refinitiv Workspace, Refinitiv Eikon, Refinitiv Real-Time and Refinitiv DataScope.

Find out more information on Refinitiv Term €STR.

Refinitiv has many years’ experience designing, calculating, governing, administering and publishing financial benchmarks that lie at the heart of the global financial system.  For more information about Refinitiv benchmarks.

^[1] The European Central Bank (“ECB”) is the administrator of the €STR benchmark and the intellectual property owner of the “€STR” mark. Refinitiv is not affiliated with the ECB and use of €STR data and the “€STR” mark does not imply or express any approval, endorsement or recommendation by the ECB of any products or services offered by Refinitiv.

^[2] EURIBOR® is the registered trademark of and used under licence of EMMI a.i.s.b.l. The source of EURIBOR® data is the EMMI.

About Refinitiv

Refinitiv, an LSEG (London Stock Exchange Group) business, is one of the world’s largest providers of financial markets data and infrastructure. With $6.25 billion in revenue, over 40,000 customers and 400,000 end users across 190 countries, Refinitiv is powering participants across the global financial marketplace. We provide information, insights, and technology that enable customers to execute critical investing, trading and risk decisions with confidence. By combining a unique open platform with best-in-class data and expertise, we connect people with choice and opportunity – driving performance, innovation and growth for our customers and partners. For more information visit: www.refinitiv.com. 

Contact

Lemuel Brewster
London Stock Exchange Group
Communications Director
Mobile +1 (917) 805-1089
lemuel.brewster@refinitiv.com