Refinitiv launches regulated Term €STR benchmark for market participants to use as a robust fallback or reference rate

LONDON / FRANKFURT / PARIS, 26 September 2023 – Effective today, Refinitiv, a London Stock Exchange Group (LSEG) business, launches a forward-looking euro risk-free interest rate benchmark, Refinitiv Term €STR¹, to support market participants comply with EU Benchmarks Regulation and meet Working Group on Euro Risk-Free Rates recommendations by including robust fallbacks in their EURIBOR®² referencing contracts.

Refinitiv first launched the prototype Term €STR rate in October 2022. In June 2023, Refinitiv enhanced the prototype by supplementing quote data from Tradeweb with €STR Overnight Index Swap (OIS) executed trade data from LCH SwapClear and extending the collection window so it covers 09:00-18:00CET from the previous business day. Refinitiv collected industry feedback on the enhanced prototype via a consultation paper and client interviews and has updated the calculation, publication time and refix policy based on this feedback.

Jacob Rank-Broadley, Head of LIBOR Transition, Benchmarks & Indices at Refinitiv, said: “Refinitiv Term €STR is the only term rate benchmark directly based on more than five trillion euros of OIS executed trades. Market participants can now confidently adopt this regulated benchmark as a robust fallback or reference rate.”

Effective today, Refinitiv Term €STR transitioned from prototype to production meaning that it is now regulated and licensed firms can use the benchmark in financial contracts.

Following the announcement date, which is expected to be in the fourth quarter of 2023, Refinitiv Term €STR will be renamed FTSE Term €STR. This change will have no impact on the methodology, terms of use or administrator of the benchmark.Further details to follow.

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.

[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. 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@lseg.com