On 23 November 2020, the European Central Bank’s working group on euro risk-free rates launched the following consultations on fallbacks to EURIBOR:

  • Consultation on EURIBOR fallback trigger events. In this consultation paper, the working group identifies and provides recommendations on a generic set of potential permanent EURIBOR fallback trigger events that market participants could consider including in future fallback provisions in their contracts and financial instruments referencing EURIBOR. Market participants are invited to give feedback on the proposed EURIBOR fallback trigger events.
  • Consultation on €STR-based EURIBOR fallback rates. In this consultation the ECB working group identifies certain appropriate EURIBOR fallbacks for cash products, while taking into account the end users’ needs, with the aim to ensure a smooth transition in case EURIBOR ceases to exist.

Both consultations have been launched in parallel to allow market participants to have a comprehensive view of the two essential elements applying to fallback measures, i.e. the EURIBOR fallback trigger event and the EURIBOR fallback rate.

The deadline for responding to both consultations is 15 January 2021.