On 22 October 2021, the European Commission adopted two
implementing regulations1 on the designation of a
statutory replacement rate for two interest rate benchmarks, the
Swiss Franc London Interbank Offered Rate (CHF
LIBOR) and the Euro Overnight Index Change
(EONIA).
What are CHF LIBOR and EONIA?
The CHF LIBOR is one of the five LIBOR interest rate benchmarks
administered by the ICE Benchmark Administration
(IBA). The CHF LIBOR is the rate of interest at
which large multinational banks access the wholesale, unsecured
funding market to fund themselves in Swiss francs. The IBA
calculates the rate based on data submissions communicated to it by
a panel of banks.
The EONIA is a critical benchmark administered by the European
Money Market Institute (EMMI). It represents the
interest rates on unsecured interbank overnight lending
transactions denominated in euros. It is used in the context of
financial instruments such as overnight index swaps which is
essential
