ESMA and EBA Publish Joint Review of Euribor

The European Securities and Markets Authority and the European Banking Authority have published the outcome of their joint review of Euribor, setting out recommendations for the rate-setting process which address a number of issues with the governance of the Euribor rate-setting mechanism. The recommendations include, among other items:

• focusing references on maturities with the highest usage and volume of underlying transactions; and
• diversifying the membership of the Euribor Steering Committee to promote independence.

Interested parties have until February 15 to submit responses.

See also: IOSCO Report on Financial Benchmarks; e.g., LIBOR (with Lofchie Comment)(The news story will also take you to two other studies in addition to the IOSCO Report.)