On 2 October 2019, the European Money Markets Institute (EMMI) announced the publication, for the first time, of the euro overnight index average (EONIA) under the reformed determination methodology. From 1 October 2019, EONIA’s methodology will directly track the euro short-term rate (€STR) of the European Central Bank (ECB) (see previous blog here). The ECB published the €STR for the first time on 2 October 2019 to reflect trading activity on 1 October 2019.

To facilitate a smooth transitioning from EONIA to the €STR, EMMI will continue to publish EONIA every TARGET day until 3 January 2022, the date on which the benchmark will be discontinued.

The EMMI have also announced the governance framework adopted by EMMI that establishes the requirements and principles related to the provision of EONIA under the reformed determination methodology. The governance framework consists of the following components:

• the EONIA Governance Code of Conduct, which sets out the governance, control and accountability frameworks established by EMMI for the provision of EONIA; and
• the Benchmark Determination Methodology for EONIA, which sets out the determination methodology for the calculation of EONIA, under both regular and contingency circumstances.

This governance framework is supported by a set of policies and procedures covering all aspects of the provision of the benchmark.