Brexit and EURIBOR: Difference between pages

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The term 'Brexit' is a combination of '''BR'''itain and '''EXIT''', meaning the exit of the United Kingdom (UK) from the European Union (EU).
(Euro Interbank Offered Rate)


Sponsored by the European Banking Federation ([http://www.euribor-ebf.eu/ EBF]),  EURIBOR® is a formal benchmark or reference interest rate since 30 December 1998.


A referendum on the issue was held in the UK on 23 June 2016.
It estimates the all-in, simple interest rate (including credit premium and liqidity premium) at which euro denominated interbank term deposits for spot value (T+2) are offered within the euro-zone by one prime bank to another prime bank in the period before 10.45 CET each business morning.
EURIBOR is calculated for periods ranging from one day to one year. It is quoted to three decimal places and on an actual/360 day-count.


The result of the referendum was to advise the UK government to begin the process of the UK leaving the EU.
==Contributing rate estimates==


The panel of banks contributing to Euribor is (September 2013) made up of 32 banks though it has been larger in the past.


Depending on the context, 'Brexit' may refer to any or all of:
The banks submit their estimate, to two decimal places, of the rate "at which euro interbank term deposits are being offered within the Eurozone by one prime bank to another at 11.00 a.m. Brussels time ("the best price between the best banks")". This is similar to the question for [[Libor]] contributing banks prior to reform of Libor in 1998 to improve accountability of contributing banks for the submitted rate.


#The decision for the UK to leave the EU.
The EBF publish a [http://www.euribor-ebf.eu/assets/files/Euribor_code_conduct.pdf code of conduct] for contributing banks
#The subsequent exit itself, on 31 January 2020.
#The consequences, and potential consequences, both of the decision and of the exit itself.
#The end of the Brexit transition period, on 31 December 2020.
#Less commonly, the referendum result, or the referendum date of 23 June 2016.


==Euribor calculation==


On 24 December 2020 the UK and European Commission agreed the terms of a post-Brexit free trade agreement that came into provisional application - subject to ratification by the EU - from 1 January 2021.
In calculating the Euribor from the submitted rates, the highest and lowest 15% of submitted rates are ignored and the central 70% remaining is averaged and published to 3 decimal places.


The EU-UK Trade and Cooperation Agreement entered into force on 1 May 2021.
Thomson Reuters is the screen service provider responsible for computing and also publishing Euribor.
 
The Euribor process is overseen by a [http://www.euribor-ebf.eu/euribor-org/steering-committee.html Steering Committee].




== See also ==
== See also ==
* [[Article 50]]
* [[Benchmark]]
* [[Brexit Britain]]
* [[EONIA]]
* [[Brexit Day]]
* [[InterBank Offered Rate]]
* [[Brexit transition period]]
* [[LIBOR]]
* [[Brexodus]]
* [[TIBOR]]
* [[Cliff edge]]
* [[Department for Exiting the European Union]]
* [[Department for International Trade]]
* [[Equivalence]]
* [[EU-UK Trade and Cooperation Agreement]]
* [[European Commission]]
* [[European Economic Area]]
* [[European Free Trade Association]]
* [[European Union]]
* [[European Union (Withdrawal Agreement) Act 2020]]
* [[Free trade agreement]]
* [[Frexit]]
* [[Grexit]]
* [[Hard Brexit]]
* [[Make UK]]
* [[No Brexit]]
* [[No Deal]]
* [[Parliamentary supremacy]]
* [[Ratification]]
* [[Schengen Area]]
* [[Sovereignty]]
* [[Taskforce on Innovation, Growth and Regulatory Reform]]
* [[United Kingdom]]
 
 
=== Other links ===
[https://www.treasurers.org/hub/technical/brexit Brexit - ACT Resources]
 
[[Category:Context_of_treasury]]

Revision as of 16:25, 2 September 2013

(Euro Interbank Offered Rate)

Sponsored by the European Banking Federation (EBF), EURIBOR® is a formal benchmark or reference interest rate since 30 December 1998.

It estimates the all-in, simple interest rate (including credit premium and liqidity premium) at which euro denominated interbank term deposits for spot value (T+2) are offered within the euro-zone by one prime bank to another prime bank in the period before 10.45 CET each business morning.

EURIBOR is calculated for periods ranging from one day to one year. It is quoted to three decimal places and on an actual/360 day-count.

Contributing rate estimates

The panel of banks contributing to Euribor is (September 2013) made up of 32 banks though it has been larger in the past.

The banks submit their estimate, to two decimal places, of the rate "at which euro interbank term deposits are being offered within the Eurozone by one prime bank to another at 11.00 a.m. Brussels time ("the best price between the best banks")". This is similar to the question for Libor contributing banks prior to reform of Libor in 1998 to improve accountability of contributing banks for the submitted rate.

The EBF publish a code of conduct for contributing banks

Euribor calculation

In calculating the Euribor from the submitted rates, the highest and lowest 15% of submitted rates are ignored and the central 70% remaining is averaged and published to 3 decimal places.

Thomson Reuters is the screen service provider responsible for computing and also publishing Euribor.

The Euribor process is overseen by a Steering Committee.


See also

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