ISDA Responds to EC on EONIA

On August 31, 2021, ISDA submitted a response to the European Commission’s (EC) draft Implementing Act (IA) on the statutory replacement rate for EONIA, a fallback of €STR plus 8.5 basis points. The response discusses the limited scope of power to designate a statutory replacement and the need to avoid a presumption of contractual frustration for contracts without an incorporated fallback. Furthermore, ISDA stressed the importance of adopting the IA in a timely manner, in light of the cessation of EONIA, scheduled for January 3, 2022.

In terms of next steps, the EC will need to adopt a final IA prior to its publication in the Official Journal of the European Union, with the regulation coming into force 20 days after its publication.

Documents (1) for ISDA Responds to EC on EONIA

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Key Trends in OTC Derivatives Market H2 2024

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