EMMI makes Euribor Reform Statement

Post Date: 02/08/2019

 The European Money Markets Institute has published a Benchmark Statement on the administration of Euro Interbank Offered Rate (Euribor). Earlier in July this year, the EMMI obtained authorization as the administrator of Euribor, which is a critical benchmark under the EU Benchmark Regulation. EMMI has made reforms to Euribor in order to ensure it meets the requirements of the Regulation, including adopting a new hybrid methodology, the phased implementation of which will be completed by the end of 2019. 


The statement provides information on EURIBOR covering the following areas:  

1. Market or economic reality; 

2. Potential limitations of the benchmark; 

3. Input data and methodology; 

4. Exercise of judgement or discretion by the administrator or contributors;  

5. Cessation and change and of the methodology; 

6. Specific disclosures for interest rate and critical benchmark. 

For the full statement read this. 

EMMI has been authorised by the Belgian Financial Services and Markets Authority (FSMA) on 2 July 2019 for the administration of EURIBOR, and has been included in the ESMA register of benchmark administrators1 on 4 July


The authorisation by the FSMA came as a recognition of EMMI’s in-depth reforms over the last years to meet EU Benchmarks Regulation (EU BMR) requirements, including the development of a new hybrid methodology for


As a Critical Benchmark Administrator, EMMI has defined and implemented robust governance and control arrangements to ensure EURIBOR’s integrity and reliability. Therefore, EMMI has adopted a Governance Framework

establishing the requirements and principles related to the provision of the EURIBOR benchmark under the hybrid methodology.

The EURIBOR Benchmark Statement should be read in conjunction with the EURIBOR Governance Framework, methodology and policy documents which are available on EMMI’s website.

EMMI remains committed to communicating on the continued progress, participation, and commitment of all parties involved in the gradual implementation of the hybrid methodology. This ongoing process, which

started in Q2 2019 is expected to conclude in Q4 2019. EMMI will issue a statement at the end of the phase-in to the new methodology. This announcement will also mark the EURIBOR Governance Framework

entering in to application. As of that date, all features and characteristics of the methodology will also apply, including the reliance on the previous day’s transactions for the determination of contributions and the calculation of

EURIBOR following the three levels in the hybrid methodology.