New reference interest rates on Capital Markets: Our experts support you comprehensively
The new overnight interest rate for the euro zone - Euro Short Term Rate
EONIA / €STR
- EONIA was published for the last time by the European Money Market Institute (EMMI) on 3 January 2022 (valid for 31 December 2021).
- The EU has issued an Implementing Regulation that takes effect if either contractual counterparties fail to agree on a fall back rate or no other bilateral contractual solution can be achieved. In such cases, this regulation provides guidance such that EONIA is replaced by €STR + 8.5 bp (also refer to EUR-Lex - 32021R1848 - EN - EUR-Lex (europa.eu)).
- €STR is calculated by the ECB and represents the cost of overnight lending, which around 50 banks report daily to the ECB. The calculation uses unsecured transactions from one million euros upwards. The €STR is calculated as a volume-weighted average excluding the marginal values (25% trimming).
- €STR is published every TARGET2 working day at 08:00 CET in the morning and refers to transactions of the previous day (T-1) that are due on T.
The affected products (derivatives and their price aligned interest as well as current accounts) were predominantly switched to a €STR-based interest rate.
If you have any questions regarding the EONIA conversion, please contact your usual contacts at DZ BANK or a contact person named on the IBOR Transition page.