Refinitiv commences public consultation and incorporates executed trade data into forward-looking €STR term rate

LONDON / FRANKFURT / PARIS, 26 June 2023 – Effective today, Refinitiv commences a public consultation and introduces methodology changes to its prototype forward-looking euro denominated interest rate benchmark, Refinitiv Term €STR[1].

The new methodology supplements data sources used in the previously announced Refinitiv Term €STR rate with trillions of euros of €STR OIS executed trade data sourced from LCH. Historical rates have been republished using the new methodology.

Jacob Rank-Broadley, Head of LIBOR Transition, Benchmarks & Indices at Refinitiv, said: “The new Refinitiv Term €STR uniquely incorporates LCH trade data and Tradeweb quote data over a long collection window to produce an accurate and robust rate that market participants can have confidence in.”

Susi De Verdelon, Head of SwapClear & Listed Rates at LCH, said: “Given the emphasis on trade data in robust benchmark construction, we are delighted to partner with Refinitiv to provide the market with a differentiated offering that includes trading activity within LCH’s global €STR swap liquidity pool.”

Today Refinitiv commences a public consultation on Refinitiv Term €STR. The consultation paper extends existing client engagement with market participant’s feedback on the inputs, calculation as well as the publication, distribution and refix policy. Refinitiv welcomes industry feedback on the topics covered in the consultation paper prior to 18:00 CET on 21 July 2023. The consultation paper is available for download here.

Following completion of the public consultation and pending necessary approvals, Refinitiv intends to transition Refinitiv Term €STR from a prototype to a regulated production rate for use in financial contracts in September 2023.

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

For more information about the Refinitiv Term €STR, please visit here.

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, visit here. 

[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.

About Refinitiv

Refinitiv, an LSEG (London Stock Exchange Group) business, is one of the world’s largest providers of financial markets data and infrastructure. 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.

Contacts

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