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New benchmark measures need to be in place by 1 January 2020. Given the importance of these benchmarks for monetary policy, the ECB on its part is working diligently on publishing a new, robust and reliable euro short-term rate by October 2019 at the latest.
Financial market participants, on their part, should redouble their efforts to ensure a smooth transition. They should examine and propose credible paths for the transition away from EONIA and towards ESTER. Contracts should be checked for consistency with the new regulations and robust fallback rates should be specified to ensure continuity in the event of disruption. For EURIBOR, while the private sector is currently reforming the benchmark, sufficient safeguards should be established in all contracts to mitigate the risk of potential adverse scenarios.
Last but not least, market participants should spread the word to ensure that in particular smaller and less sophisticated market participants are aware of the need to prepare for the new benchmarks and to take active steps to adjust systems, processes and contracts. Time is running short.