Emmi consults on axing ‘expert judgement’ for Euribor

Level 2.3 inputs extrapolated from term version of €STR will replace internal bank estimates

Euribor’s administrator is consulting on a plan to end the use of so-called expert judgement – currently the bottom layer of the input waterfall – in panel bank submissions. The proposal would see the cost of unsecured funding extrapolated from a recently launched term version of the euro short-term rate, or €STR, when real-world transactions dry up, cementing the risk-free rate (RFR) as a critical component of the revamped legacy benchmark.

The plan goes a step further than previous proposals