Guideline (EU) 2021/565 of the European Central Bank of 17 March 2021 amending Guideline (EU) 2019/1265 on the euro short-term rate (€STR) (ECB/2021/10)

1 This Guideline governs the euro short-term rate and establishes the ECB’s responsibility for its administration and the oversight of the euro short-term rate determination process. The Guideline also establishes the tasks and responsibilities of the ECB and the NCBs with respect to their contribution to the euro short-term rate determination process and other business procedures.

2 This Guideline governs also the calculation and publication of the compounded euro short-term rate average rates and the compounded euro short-term rate index.’;

1 The ECB shall be responsible for the following tasks: (a) the calculation and publication of the compounded euro short-term rate average rates for the following set of tenors: 1 week, 1 month, 3 months, 6 months and 12 months, as well as the compounded euro short-term rate index; (b) the publication of the calculation and publication rules of the compounded euro short-term rate average rates and the compounded euro short-term rate index. The ECB shall publish on its website the compounded euro short-term rate average rates for the set of tenors referred to in the first subparagraph, as well as the compounded euro short-term rate index, to five decimal places for the rates and to eight decimal places for the index no later than 9.15 CET on each TARGET2 business day, starting on 15 April 2021. There shall be no revision of the published values for the compounded euro short-term rate average rates or the compounded euro short-term rate index after that time.

2 Notwithstanding paragraph 1, the ECB and the NCBs shall not be responsible for the use of, or reliance on, the compounded euro short-term rate average rates and the compounded euro short-term rate index by a stakeholder or other third party in any financial instrument, contract, trade or any other commercial activity or investment decision. The ECB shall publish on its website a disclaimer of responsibility of the ECB and of the NCBs in that regard.’;

1 The ECB shall consult with stakeholders to the extent it is possible or practicable prior to any of the following: (a) the implementation of a material change to the euro short-term rate; (b) the adoption of policies or procedures on the possible cessation of the euro short-term rate; (c) the cessation of the publication of the compounded euro short-term rate average rates and/or compounded euro short-term rate index; (d) a material change in the calculation and publication rules of the compounded euro short-term rate average rates and/or the compounded euro short-term rate index. In such a case the ECB shall publish the launch of a consultation procedure and hold it reasonably in advance of the proposed action.

2 In accordance with Article 9(5)(d) and (k), the Oversight Committee shall review proposed actions referred to in paragraph 1 before stakeholders are consulted.’.

1 This Guideline shall take effect on the day of its notification to the national central banks of the Member States whose currency is the euro (NCBs).

2 The NCBs shall comply with this Guideline at the latest from 15 April 2021.

This Guideline is addressed to all Eurosystem central banks.