EURIBOR and Exchange: Difference between pages

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''Reference rates.''
1. ''Investment - trading.''


(Euro Interbank Offered Rate).
An exchange is an open and organised marketplace in which commodities, securities or other financial instruments are traded.


Sponsored by the European Money Markets Institute ([https://www.emmi-benchmarks.eu/ EMMI]),  EURIBOR® is a formal benchmark or reference interest rate launched in 1998.


2. ''Foreign currency.''


It estimates the all-in, simple interest rate (including credit premium and liquidity 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.
Relating to transactions between different currencies.
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.




Also written 'Euribor'.
3. ''Financial and commercial transactions.''


Relating to a two-way flow of money or other value.


EMMI continuously reviews the basis of EURIBOR, striving to improve it.
Contrasted with a one-way flow, such as a remittance.
 
 
:<span style="color:#4B0082">'''''Robust fallback language for EURIBOR'''''</span>
 
:"... the working group on euro risk-free rates has been working extensively to identify best practices for contract robustness in contracts and financial instruments referencing EURIBOR.
 
:Although EURIBOR is not scheduled to be discontinued, the development of more robust fallback language addressing the permanent discontinuation of EURIBOR can help to enhance legal certainty and reduce the risks stemming from the worst-case scenario and, at the same time, comply with the EU Benchmark Regulation (BMR), when applicable."
 
:''Recommendations by the working group on euro risk-free rates - European Central Bank - 11 May 2021 - p2''
 
 
 
==Contributing rate estimates==
 
Since 2013, a panel of banks contribute to the Euribor. The panel is made up of:
 
* Banks from EU countries participating in the euro from the outset.
* Banks from EU countries not participating in the euro from the outset.
* Large international banks from non-EU countries but with important euro zone operations.
 
 
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 am 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.
 
EMMI publishes a [http://www.euribor-ebf.eu/assets/files/Euribor_code_conduct.pdf 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 [http://www.euribor-ebf.eu/euribor-org/steering-committee.html Steering Committee].




== See also ==
== See also ==
* [[Benchmark]]
* [[Commodity]]
* [[Benchmarks Regulation]] (BMR)
* [[Exchange controls]]
* [[Bloomberg]]
* [[Exchange creditors]]
* [[Contract]]
* [[Exchange-for-value system]]
* [[EONIA]]
* [[Exchange rate]]
* [[€STR]]
* [[Exchange traded]]
* [[Euro LIBOR]]
* [[Exchange Traded Commodity]]
* [[European Central Bank]]
* [[Exchange-traded funds]]
* [[European Money Markets Institute]]
* [[Fallback]]
* [[Financial instrument]]
* [[Financial instrument]]
* [[InterBank Offered Rate]]
* [[Foreign currency]]
* [[LIBOR]]
* [[Foreign exchange]]
* [[Reference rate]]
* [[Remittance]]
* [[Reuters]]
* [[Security]]
* [[Risk-free rates]]
* [[Stock exchange]]
* [[TIBOR]]
 
 
==External link==
[https://www.ecb.europa.eu/pub/pdf/other/ecb.recommendationsEURIBORfallbacktriggereventsandESTR.202105~9e859b5aa7.en.pdf Recommendations by the working group on euro risk-free rates on EURIBOR fallback trigger events and €STR-based EURIBOR fallback rates - European Central Bank - 11 May 2021]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Manage_risks]]
[[Category:Investment]]
[[Category:Financial_products_and_markets]]

Revision as of 13:41, 14 April 2021

1. Investment - trading.

An exchange is an open and organised marketplace in which commodities, securities or other financial instruments are traded.


2. Foreign currency.

Relating to transactions between different currencies.


3. Financial and commercial transactions.

Relating to a two-way flow of money or other value.

Contrasted with a one-way flow, such as a remittance.


See also