Roundtable on euro risk-free rates - Presentation of the new RFR

Working group on euro risk-free rates
This industry-led working group was established to identify and recommend risk-free rates that could serve as a basis for an alternative to current benchmarks used in a variety of financial instruments and contracts in the euro area.

The group put forward three risk-free rate candidates. It then sought feedback from the market via a public consultation on which of the three would be the most suitable.

Based on further discussion and the feedback received, the group announced its recommendation on 13 September 2018 that ESTER be used as the risk-free rate for the euro area.

The group is now exploring possible approaches for ensuring a smooth transition to this rate.