The European Central Bank has closed a consultation that found that most market stakeholders were positive about it the bank acting as a trusted authority publishing compounded term rates using the euro short-term rate (€STR).
The consultation closed on September 11 and saw 44 market participants submit responses or comments in relation to the consultation document.
The ECB stated that a large majority of respondents were in favour of the proposal. It also said that the The €STR compounded rates are expected to be reliable and robust as the calculations would be based on the overnight €STR.
Moreover, most of the people polled were positive about the proposed calculation methodologies for compounded rates as well as index values. That being said, some called for more precise explanations and examples, especially regarding non-standard maturities and the use of the index values.
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