Scrapping of Eonia revamp piles pressure on ECB

Dealers fear central bank's new rate won’t arrive in time to create swap curve by 2020

ECB faces pressure to find an alternative rate

New drama has been injected into Europe’s reform of benchmark interest rates, after the failure of attempts to patch up Eonia. The European Central Bank is working on an alternative, but dealers worry it won’t arrive in time for a full swap curve to develop.

Under the EU’s benchmark rules, Eonia may be barred for use in new trades from the start of 2020 – the same deadline given by the ECB for delivery of its new rate.

“Building up a new swaps market takes ages,” says Eske Traberg Smidt, head