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€STR
The Euro Short-Term Rate (€STR) is a reference rate for the euro. This interest rate can be used as the rate referenced in financial contracts that involve the euro. €STR is administered and calculated by the European Central Bank (ECB), based on the money market statistical reporting of the Eurosystem. According to the indications of the working group on euro risk-free rates, €STR replaced the Euro Overnight Index Average ( EONIA) as the Euro risk-free rate for all products and contracts. History 20 September 2017: ECB's Governing Council decided to develop a euro short-term rate based on data collected by the Eurosystem for money market statistical purposes. 13 September 2018: the ''working group on euro risk-free rates'' recommended to replace the EONIA with the euro short-term rate. 12 March 2019: the ECB decided to use the acronym "€STR". 2 October 2019: the ECB started publishing the rate. Characteristics Characteristics of the €STR: * The €STR is published b ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Euribor
The Euro Interbank Offered Rate (Euribor) is a daily reference rate, published by the European Money Markets Institute, based on the averaged interest rates at which Eurozone banks borrow unsecured funds from counterparties in the euro wholesale money market (before only in the interbank market). Prior to 2015, the rate was published by the European Banking Federation. Scope Euribors are used as a reference rate for euro-denominated forward rate agreements, short-term interest rate futures contracts and interest rate swaps, in very much the same way as LIBORs are commonly used for Sterling and US dollar-denominated instruments. They thus provide the basis for some of the world's most liquid and active interest rate markets. Domestic reference rates, like Paris's PIBOR, Frankfurt's FIBOR, and Helsinki's Helibor merged into Euribor on EMU day on 1 January 1999. Euribor should be distinguished from the less commonly used "Euro LIBOR" rates set in London by 16 major banks ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
EONIA
Eonia (Euro Overnight Index Average) was computed as a weighted average of all overnight unsecured lending transactions in the interbank market, undertaken in the European Union and European Free Trade Association (EFTA) countries by a Panel of banks (the same as for Euribor) subject to the Eonia Code of Conduct. It was reported on an ACT/360 day count convention and displayed to three decimal places. "Overnight" means from one TARGET day (i.e. day on which the Trans-European Automated Real-time Gross Settlement Express Transfer system is open) to the next. ''Eonia reference rates'' were calculated by the European Central Bank, based on all overnight interbank assets created before the close of RTGS systems at 6pm CET, and published through GRSS (Global Rate Set Systems) every day before 7pm CET. It can be found under the ISIN identifier EU0009659945. EONIA was replaced by the Euro Short-Term Rate (€STR), published by the ECB since 2nd of October 2019. See also *€STR * EU ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Reference Rate
A reference rate is a rate that determines pay-offs in a financial contract and that is outside the control of the parties to the contract. It is often some form of LIBOR rate, but it can take many forms, such as a consumer price index, a house price index or an unemployment rate. Parties to the contract choose a reference rate that neither party has power to manipulate. Examples of use The most common use of reference rates is that of short-term interest rates such as LIBOR in floating rate notes, loans, swaps, short-term interest rate futures contracts, etc. The rates are calculated by an independent organisation, such as the British Bankers Association (BBA) as the average of the rates quoted by a large panel of banks, to ensure independence. Another example is that of swap reference rates for constant maturity swaps. The ISDAfix rates used are calculated daily for an independent organisation, the International Swaps and Derivatives Association, from quotes from a large pane ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Overnight Indexed Swap
An overnight indexed swap (OIS) is an interest rate swap (''IRS'') over some given term, e.g. 10Y, where the periodic fixed payments are tied to a given fixed rate while the periodic floating payments are tied to a floating rate calculated from a daily compounded overnight rate over the floating coupon period. Note that the OIS term is not overnight; it is the underlying reference rate that is an overnight rate. The exact compounding formula depends on the type of such overnight rate. The index rate is typically the rate for overnight lending between banks, either non-secured or secured, for example the Federal funds rate or SOFR for US dollar, €STR (formerly EONIA) for Euro or SONIA for sterling. The fixed rate of OIS is typically an interest rate considered less risky than the corresponding interbank rate ( LIBOR) because there is limited counterparty risk. LIBOR–OIS spread The LIBOR–OIS spread is the difference between IRS rates, based on the LIBOR, and OIS r ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Central European Time
Central European Time (CET) is a standard time of Central, and parts of Western Europe, which is one hour ahead of Coordinated Universal Time (UTC). The UTC offset, time offset from UTC can be written as UTC+01:00. It is used in most parts of Europe and in several African countries. CET is also known as Middle European Time (MET, German: :de:Mitteleuropäische Zeit, MEZ) and by colloquial names such as Amsterdam Time, Berlin Time, Brussels Time, Budapest Time, Madrid Time, Paris Time, Stockholm Time, Rome Time, Prague time, Warsaw Time or Romance Standard Time (RST). The 15th meridian east is the central axis per UTC+01:00 in the world system of time zones. As of 2023, all member state of the European Union, member states of the European Union observe summer time (daylight saving time), from the last Sunday in March to the last Sunday in October. States within the CET area switch to Central European Summer Time (CEST, UTC+02:00) for the summer. The next change to CET is scheduled ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Eurozone
The euro area, commonly called the eurozone (EZ), is a Monetary union, currency union of 20 Member state of the European Union, member states of the European Union (EU) that have adopted the euro (Euro sign, €) as their primary currency and sole legal tender, and have thus fully implemented Economic and Monetary Union of the European Union, EMU policies. The 20 eurozone members are: : Austria, Belgium, Croatia, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. The seven non-eurozone members of the EU are Bulgaria, the Czech Republic, Denmark, Hungary, Poland, Romania, and Sweden. They continue to use their own national currencies, although all but Denmark are obliged to join once they meet the euro convergence criteria. Bulgaria is targeting to join the eurozone on 1 January 2026. Bulgaria is expected to become the 21st eurozone member from January 1, 2026. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
SOFR
Secured Overnight Financing Rate (SOFR) is a secured overnight rate, overnight interest rate. SOFR is a reference rate (that is, a rate used by parties in commercial contracts that is outside their direct control) established as an alternative to Libor, LIBOR. LIBOR had been published in a number of currencies and underpins financial contracts all over the world. Deeming it prone to manipulation, UK regulators decided to discontinue LIBOR in 2021. In 2022, the LIBOR Act passed by the United States Congress, U.S. Congress established SOFR as a default replacement rate for LIBOR contracts that lack mechanisms to deal with LIBOR's cessation. The Act also grants a safe harbor to LIBOR contracts that transition to SOFR. Previously, SOFR was seen as the likely successor of LIBOR in the US since at least 2021. SOFR uses actual costs of transactions in the overnight Repurchase agreement, repo market, calculated by the Federal Reserve Bank of New York, New York Federal Reserve. With US gov ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
SARON
SARON stands for Swiss Average Rate Overnight and is a measurement of the overnight interest rate of the secured funding market denominated in Swiss Franc (CHF). It is based on transactions and quotes posted in the Swiss repo market, and is administered by SIX. Internationally, there is a consensus that financial benchmarks need to be resilient and reliable. Repo markets, in their role as the backbone of the financial industry and central bank activity, are the obvious choice. They are liquid, highly regulated, and stable. The National Working Group on the Swiss Franc reference rate, which leads efforts to reform benchmark interest rates, has recommended SARON as the alternative to CHF Libor. In 2020, the SARON, along with the SAION (SARON Index), was endorsed under the EU Benchmarks Regulation and is registered with the European Securities and Markets Authority, which means that it can be used as an underlying for financial products sold in the EU. Introduction Internatio ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
ISIN
Isin (, modern Arabic language, Arabic: Ishan al-Bahriyat) is an archaeological site in Al-Qādisiyyah Governorate, Iraq which was the location of the Ancient Near East city of Isin, occupied from the late 4th millennium Uruk period up until at least the late 1st millennium BC Neo-Babylonian period. It lies about southeast of the modern city of Al Diwaniyah. The tutelary deity of Isin, dating back to at least the Early Dynastic Period (Mesopotamia), Early Dynastic period, was the healing goddess Gula (goddess), Gula with a major temple (, E-gal-ma) sited there as well as smaller installations for the related gods of Ninisina and Ninlil, Sud. Archaeology Isin is located approximately south of the ancient city of Nippur. The site covers an area of about 150 hectares with a maximum height of about 10 meters. By 1922 the site had been suggested as that of Isin. Ishan al-Bahriyat was visited by Stephen Herbert Langdon for a day to conduct a sounding, while he was excavating at K ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
TARGET Services
TARGET Services (for Transeuropean Automated Real-time Gross-settlement Express Transfer) are payment services operated by the Eurosystem for the euro area and beyond on its proprietary financial market infrastructures. As of late 2024, TARGET Services included T2 (RTGS), T2 for large payments (which replaced TARGET2 in 2023), TARGET2-Securities (T2S) for securities transactions, and TARGET Instant Payment Settlement (TIPS) for instant payments. A fourth service, the Eurosystem Collateral Management System (ECMS), is to complement the TARGET suite in mid-June 2025. History In 1993, as the Maastricht Treaty entered into force, central banks of the EU agreed that all of them should have an real-time gross settlement (RTGS) system, as some had already done in the previous decade. In 1995, they decided to interlink these national infrastructures through a pan-European system that they called TARGET. That original TARGET system duly began operations on . Its first version had a decentr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Euro
The euro (currency symbol, symbol: euro sign, €; ISO 4217, currency code: EUR) is the official currency of 20 of the Member state of the European Union, member states of the European Union. This group of states is officially known as the euro area or, more commonly, the eurozone. The euro is divided into 100 1 euro cent coin, euro cents. The currency is also used officially by the institutions of the European Union, by International status and usage of the euro, four European microstates that are not EU members, the British Overseas Territory of Akrotiri and Dhekelia, as well as unilaterally by Montenegro and Kosovo. Outside Europe, a number of special territories of EU members also use the euro as their currency. The euro is used by 350 million people in Europe and additionally, over 200 million people worldwide use currencies pegged to the euro. It is the second-largest reserve currency as well as the second-most traded currency in the world after the United Sta ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Risk-free Rate
The risk-free rate of return, usually shortened to the risk-free rate, is the rate of return of a hypothetical investment with scheduled payments over a fixed period of time that is assumed to meet all payment obligations. Since the risk-free rate can be obtained with no risk, any other investment having some risk will have to have a higher rate of return in order to induce any investors to hold it. In practice, to infer the risk-free interest rate in a particular currency, market participants often choose the yield to maturity on a risk-free bond issued by a government of the same currency whose risks of default are so low as to be negligible. For example, the rate of return on zero-coupon Treasury bonds (T-bills) is sometimes seen as the risk-free rate of return in US dollars. Theoretical measurement As stated by Malcolm Kemp in chapter five of his book ''Market Consistency: Model Calibration in Imperfect Markets'', the risk-free rate means different things to different pe ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
