On March 15, 2018, the ECB launched a second consultation to market participants and interested parties on the new ECB overnight reference rate. Comments on this second and detailed report of the new features of this rate will be welcomed up to April 20, 2018.
The ECB expects to collect stakeholders’ views both on the methodology adopted and on the key technical and operational features. The new rate was announced on September 21, 2017 and a first consultation has already been launched on November 28, 2017.
The objective of an ECB overnight rate is twofold: it will complement the benchmark rates manufactured by the private sector and will also serve as a backstop reference rate. Benchmark rates underlie many important features of financial markets contracts, and play a central role in the transmission of ECB monetary policy.
The rate will be based only on transactions in euro that are reported within the ECB money market statistical reporting standards. It is expected to be launched in 2020, after a public consultation to the industrial parties is answered too.