Public consultation on the euro forward-looking term rate EFTERM ®

After introducing the Beta EFTERM® Rates on 13 June 2022, The European Money Markets Institute (EMMI) is now launching a public consultation on the euro forward-looking term rate EFTERM®.

This consultation represents a major milestone in the development of this fallback rate. It's also a very good news for EURIBOR® users as EFTERM® will be an easily accessible option to comply with relevant legal requirements[1] to have robust plans in place for the event that a benchmark ceases to exist.

From 1 July to 31 August 2022, all interested parties will have the opportunity to respond to the questions that are published on the EMMI website. The draft methodology is detailed therein. It is based on the recommendations issued by the Euro Risk Free Rate Working Group.

The summary of the stakeholders' feedback and the final methodology for EFTERM® will be available during the fourth quarter of 2022.

Link to the EFTERM® consultation paper:

https://www.emmi-benchmarks.eu/globalassets/documents/pdf/efterm/D0252A-2022---EFTERM-Consultation-Paper.pdf

Link to the Beta EFTERM® webpage:
https://www.emmi-benchmarks.eu/benchmarks/FallbackRates/BetaEfterm/

Media contact

Isabelle Coppens, Associate Director Weber Shandwick

icoppens@weberschandwick.com

+32 2 894 90 16

Ismaël Boukamher, Communication Officer EMMI

I.boukamher@emmi-benchmarks.eu

[1] Article 28 II of the EU Benchmarks Regulation (Regulation (EU) 2016/1011 of the European parliament and of the Council on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds)