Following a proposal made by the EONIA Steering Committee, Euribor EBF and Euribor ACI, sponsors of EONIA, have decided to move the EONIA rate to three decimals instead of the current two decimals.
The first EONIA rate to be published with 3 decimals will be launched on 3 September.
“This decision was made upon request from the market,” said Guido Ravoet, secretary general of the European Banking Federation (EBF). “This change will provide the industry with a more refined benchmark and more accurate data and thus answer specific needs expressed by our industry.”
EONIA (Euro OverNight Index Average) is the effective overnight reference rate for the euro. It is computed as a weighted average of all overnight unsecured lending transactions undertaken in the inter-bank market, initiated within the Euro area by the contributing banks and is calculated by the European Central Bank (ECB).